My February 2019 Market Update

Well, in a nutshell – It sprints, it rises up, it stumbles down, it takes a break, sometimes it’s out of breath, reacting to the day’s events and news, so it’s emotional and fragile. It’s fascinating to watch it respond to way to much ‘news’ and not enough true knowledge.

Market High Points

Interest rates climbed most of 2018, from 4% up to 5.5%, then back down to around 4.75%. (To quote mortgage lenders, “a one per cent rise in the home interest rate knocks over 1 million buyers out of the U.S. market”).  Good news, could be Great news, if it continues to slide back!!!!

 Our Oakdale inventory of homes for sale, has averaged about 102 resale homes on the market at any one point in time, in the 95361 zip code. There are 3 active subdivisions, with about 10 homes on the market. It’s been this way for several years. Stable

 Maximum loan limits for FHA are up to $350,000, VA and Conventional loans climbed to $485,000!  USDA loans were extended for the Oakdale area. USDA is an income based loan, with 100% financing NO MONEY down.  Great news, Again!!!!  Very popular with entry level buyers up to about $275,000 Max!

New housing starts in 95361, lag way behind our housing needs.  Take a drive around town, do you see any new roads being cut in the dirt? We only have a few pocket subdivisions, Westport (off Crane & West J), the gated River Point (River Ave.), and Tesoro by the golf course. The majority of new homes built in Oakdale, have been on left over subdivision lots from the great recession. Bridle Ridge and The Vineyards are nearly completed. Good news and not so good news. We need more housing!!

 Investors who bought homes (several hundred plus of them) during the recession, 2008 to 2012, are beginning to sell. They are pocketing their profits, or 1031 tax exchanging into something else, and more likely, somewhere else. Good news for buyers, but no so good news for tenants…reduces rental inventory, but helps the availability of homes to buy.

Rental inventory is scarce, and the rents are up, up and away. Recent articles suggest it has peaked, but I am not hearing it that way from tenants or want to be tenants, in Oakdale. Not good news for the renters, Great news for the landlords.

YES, People are moving out of Oakdale, but an equal number are moving in and there is a waiting list!!! Very good news, we are still the Diamond of Stanislaus County, thank you Oakdale Joint Union School District, Oak Valley District Hospital, and the City of Oakdale.

Keep the castle in great shape, it is one of your largest investments, and like 2018, have a very prosperous 2019 !