No deep thoughts this week, as we go straight for the jugular (Valentine’s Day does that to me).
- Some online brokerage out of Utah names Homie just laid off 1/3 of its workforce. Usually this type of announcement does nothing for me. But the company cited a “changing real estate market,” as a reason for the move. Groan inducing, but not really something worth my interest. This comment is what caught my eye: “We are now refocusing on helping solve this [housing affordability] problem by making buying a home possible for more people. Those leaving today have helped to build the products to make this a reality.” Basically, thanks for giving us the tools necessary to help solve the housing affordability issue but now that we have it figured out, your services are no longer needed. There’s something about that that doesn’t sit right with me. Maybe it was a poorly crafted press release…or maybe it’s just how things are going in the world today. I can tell you, however, the laying people off isn’t going to have the positive effect on housing affordability that they hoped.
- Mortgage rates hit 4% this week and it seems as though the end is nigh, according to half of the housing experts. Or it’s not, if you listen to the other half. Luckily, as mortgage rates hovered around 4% all week (on average) bankrate.com rescued us with this brilliant article. It’s not often someone will tell you to “shop around” to find the best deal. Oh yes, and keep that credit score high. Wow…with insightful analysis like this…🤦♂️…yeah, I just can’t even.
- According to Redfin, homes are flying 🪰 off the shelf at an ever fast pace than last year. For the 4 week period between mid-January to mid-February, 57% of homes went into contract within 2 weeks. That’s fairly par for the course in this area so 57% seems low to me.
- Interesting piece by Rob Chrisman (who’s a legit mortgage guru) that was passed along to me by a lender. Maybe I didn’t write quite as well as Rob did about the impending conflict in Ukraine, but the point remains the same. That type of international volatility wreaks havoc on the stock market which affects the higher end incomes the most which, in turn, toys with the real estate market. I’m thinking that we’ll continue to have an inventory crunch (crunchier, that is) through the Spring until this situation evens out. Perhaps betting on an early spring selling season won’t beat it self out after all.
- In the same piece that I referenced above, I talked about American Canyon seemingly bucking the luxury market trend of Benicia, Green Valley, and Rancho Solano (I should probably add Hiddenbrooke in there as well…). Four new American Canyon homes on the market in the last 2 days. So maybe AmCan is going to buck the trend.
For those of us who have been waiting for Spring Training to start, MLB officially announced that it’s being pushed back to March 5th 🦗 I guess that locking the players out wasn’t enough of a clue. Luckily, ESPN has a full slate of NCAA baseball and softball on (in case you’re wondering, the Sac State Hornets are up on the Huskies 3-0 after 1 full frame). That’s all for this week. I hope that you enjoy your three day weekend.