Homebuyer Activity Shows Signs of Warming Up for Spring

The spring season appears to be warming up in housing as more and more buyers enter the market. And after rising mortgage rates sidelined so many buyers last year, that’s a good sign for sellers. Says The RE/MAX Elite Partners

“Spring is officially here, and like green shoots emerging from the bleak winter, new data suggests that more buyers are back in the market, although more subdued compared to a year ago.”

We know buyer activity is trending up because of mortgage purchase application data. According to Investopedia:

“A mortgage application is a document submitted to a lender when you apply for a mortgage to purchase real estate.”

That means the number of mortgage applications shows how many buyers are applying for mortgages. Put another way, an increase in mortgage applications means an increase in buyer demand – and as Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains, application activity started ramping up as mortgage rates fell steadily in March:

In fact, we can see how mortgage rates have a direct impact on applications over time. As rates rose dramatically last year, applications fell in response (see graph below):

What This Means for You

Buyers are coming this spring, which is typically the busiest time of the year in real estate. And if you’re a Seller, you need to prepare:

“If homeowners are planning to sell in 2023, now is the time to get ready.”

Here is a little local Lake County Real Estate information that is certainly is very interesting – Over the month of March 2023, a total of 80 single family homes were sold per CRMLS (Multiple Listing Service) compared to 51 homes sold in the previous month, and 130 sold during the same time period in 2022.

Our current market has 292 stick-built and manufactured homes available compared to 269 units available last month (February).  The homes sold in March were selling at an average of 90% compared to original list/asking price – this is roughly the same stats as last month, however, less than one year ago homes at this time were selling at 100% of asking price.  Another interesting fact of March sales is that 39% of homes sold had Seller concessions of an average of $8,126.00 a month ago 30% of homes had an average concession amount of $10,085.00 vs. one year ago 31% of homes had an average Seller concession of $6,847.00.

Bottom Line

The housing market is warming up for spring. If you’re thinking about selling your house and taking advantage of this recent uptick in buyer activity, let’s connect.  

We look forward to meeting all the members of the Clearlake Chamber – We are very happy to be new members and look forward to seeing many of you at future events and perhaps even over a nice conversation about Real Estate! 🙂 

There is so much to do and enjoy in our beautiful Lake County… we look forward to some Spring  time and a wonderful Summer season!

Feel free to reach out to me or my fellow Team members directly below or visit our website at: www.ElitePartnersRealEstate.com 

 🏞 Lake County Home sales are starting to pick up, even with the crazy weather 🌨 we just had. I personally showed 3 different sets of buyers homes as soon as the power came back on 🙃 (literally). Spring is going to be here before we know it and people are still looking even with a higher interest rate. One phrase we have in the industry is you “date 🌹 the rate and marry 💍 the purchase price”. Some buyers know what they are looking for and others are just getting started. When buyers hesitate to write the offer it makes less competition for others making the offer accepted without a multiple counter situation happening. 

 Homes that have been sitting this winter are more likely to see lower 📉 offers accepted. Some sellers are even considering allowing credits to the buyer for closing costs or buying down the rate temporarily. Freddie Mac is reporting an average rate of 6.5% currently and will rise 📈 again this spring. Inventory is still below average for the amount of homes we currently have active on the market in Lake County. 

 🏡📣 February 2023 Active listings in Lake County are sitting at 67 homes and 64 active vacant land properties.

 💵🏡 Sold homes for the month of February were at 52 and 18 sold in vacant land. Currently on the market for Lake County we have 293 homes available and 542 vacant land properties for sale. Commercial 🏢 properties are starting to pick up as well with 55 active currently in Lake County.

 If you are looking 👀 to sell this spring, price your home correctly. It’s more likely to get more showings and an offer sooner. When you list too high the buyer won’t even consider looking at the home because it’s out of their budget and they think the seller is unrealistic. The market this spring 🌱🌿  is going to be different than last year. We are going through inflation and buyers are more cautious before writing the offer. 

Helpful tips before listing are getting pre-inspections before listing to help show the buyer what condition the home is in. It can mean little to no re-negotiating during the escrow process. Call 📲 your local expert, like myself to see just how we can help you achieve your 2023 goals.

Jessica F. Spencer DRE #02021763
Better Homes & Gardens Real Estate Wine Country Group

*If you are interested in writing an article for our newsletter please Contact Us, we would love to hear from you!

It’s an exciting time for the Clear Lake Chamber of Commerce – The Oldest Chamber of Commerce in Lake County.

We invite you to join us as we bring new ideas and energy to not only enhance our business communities, but also invite and welcome visitors to beautiful Lake County.

A Special Thank You to Jim & Sue Burton and the staff at the Clearlake Oaks Moose Lodge for hosting our installation dinner. Sue spoke about the Clearlake Oaks Catfish Derby. Held annually for over thirty years, the Clearlake Oaks – Glenhaven Catfish Derby is the largest catfish tournament west of the Mississippi. Each May hundreds of eager fishermen and women visit Clear Lake for a chance to land the BIG ONE and win one of many prizes.

This is not your ordinary derby with a $5000 top prize to the winner. In previous years, the event has raised $45,000 for local programs. Please see the Chamber website for more info under the Calendar tab at the top.

Juan Salazar and Rosario Onape of Lake Auto Registration Service in Clearlake were the winners of the Member of the Month drawing at the last Chamber dinner!

Want to have a wonderful dinner?

Our next Clear Lake Chamber of Commerce dinner will be held at the beautiful new Greenview Bar and Grill in Hidden Valley Lake. Matt Metcalf; Food and Beverage Manager, is preparing a special dinner on Tuesday, April 4. Dinners are $ 35.00, tax and tip included. Social at 5:30, Dinner at 6:00.

Greenview Bar and Grill
19210 Hartmann Rd, Hidden Valley Lake, CA

Want to learn of some exciting development in Lake County?

Our guest speaker will be Alan Flora, Clearlake City Manager. If you have not seen his presentation on Impact on Clear Lake, I encourage you to attend and learn how these projects affect all of Lake County, bringing pride, value and a new excitement to our communities. We invite you to bring a friend or neighbor to enjoy the presentation.

Make a reservation HERE or call the Chamber office at (707) 994-3600

See you on April 4^th!

Joan M. Jacobs
President
Clear Lake Chamber of Commerce

By Jessica Spencer, Realtor at Better Homes and Gardens Real Estate Wine Country Group

January total home sales for Lake County at 44, Hidden Valley Lake leading the total with 11, the City of Clearlake right behind at 10 sold homes. In 2022 we had 60 homes sold in January, making 2023 down by 26.7% compared to last year.

The average number of days to sell in 2023 is 65, in 2022 it was only 59. Our county’s median sold price is $315,000, which allows us to still be affordable compared to most counties in today’s market. Last year the median home price sold was $344,950, the difference is -8.7%.

The monthly supply inventory in 2023 is at 4.7, last year at this time we were at 2.5.

Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Historically, six months of supply is associated with moderate price appreciation, and a lower level of months’ supply tends to push prices up more rapidly. -source from nar.org By: Meredith Dunn

We are still down in inventory, giving the sellers a better chance at getting closer to the list price. Interest rates remain above 6% across the nation, we have been seeing a steady rate between 6% and 7% for the last 3 months. The experts are predicting a lower interest rate come springtime. Historically we have never seen interest rates as low as they were during the pandemic. 

The 30-year, fixed-mortgage interest rate averaged 6.27 percent in January, up from 3.45 percent in January 2022, according to Freddie Mac. -sourced by car.org

Lake County: The inventory of homes available in Lake County at the end of January stands at 351. Approximately 32% of the inventory (114 homes) is in the communities of Clearlake and another 12% (42 homes) are in Lakeport. The countywide inventory is 13% above the inventory in January 2022 (310) and it is 2% below the inventory last month (357). -Sourced from Gerry Snedaker Broker/Partner at Better Homes and Gardens RE – Wine Country Group

I want to end with a message from the author; “We still have a need for listings, inventory is low in Lake County and buyers are shopping again. We had a quiet January, which we always do after the holidays. February listing appointments turn into March listings and a sale by April. And buyers, please do not listen to the news on TV. It is not all doom and glume about buying, experts are predicting a great buying season this spring. The next 5 years are going to be a “normal market”, so start getting ready to buy or call a mortgage broker to talk about the different loan programs they have for investors and vacation homes. We have more choices now than we have ever had before with mortgages. Lake County has the potential to grow and will be growing, so grow with it. Buying or selling can be a scary thing to some, so check in with your local experts if you have any questions. I look forward to working together to help the businesses and families grow in Lake County.”

– Jessica Spencer, Realtor at Better Homes and Gardens Real Estate Wine Country Group

Wed Jan 25, 2023 5:30pm – 7:30pm , Join Zoom Meeting: https://us06web.zoom.us/j/89603074296
During this session, EPA will provide information and updates related to the Proposed Plan, offer time for Q&As, and an opportunity to submit official written comments. Please use the information below to join the online meeting via Zoom, and feel free to share this information with anyone else who may be interested.

EPA will host an optional in-person public open house for community members interested in learning more about the Sulphur Bank Superfund Site Proposed Plan. This is an opportunity to ask questions of EPA staff, learn more about the site and related issues, and submit official written comments on the Proposed Plan. This optional open house is one of several engagement opportunities related to the Proposed Plan. 

Date and Time: February 8th, 2023 from 3:00 – 7:00 p.m.. 
Location: The Moose Lodge, 15900 Moose Lodge Lane; Clearlake Oaks, CA 95423

The 160 acre Sulphur Bank Mercury Mine Superfund site sits on the shore of Clear Lake in Lake County, Calif. Historic mining contaminated the property with unhealthy levels of mercury, arsenic and antimony. Contamination from the site also impacts the wetland area north of the mine and Clear Lake itself. Since the site was added to the Superfund cleanup program in August 1990, EPA has completed eight early cleanups to protect human health and the environment and reduce contamination in soil, lake water and sediments, fish and wildlife, and Tribal and residential properties near the mine.

The goals for the proposed cleanup are: Combining smaller waste piles with larger piles to reduce the area of contamination. Putting a liner, clean earth, and clean soil over the contaminated waste and soil to: make residential areas safe for a lifetime of use; make on-mine areas safe for use by Elem Indian Colony residents (hunting, fishing, foraging, transit to nearby lands); and prevent contamination from leaving the site with stormwater or wind. Limiting mercury entering Clear Lake to allow mercury levels in sediments and fish to decrease over time, and help EPA determine the cleanup needed for the lake.

The public can submit comments to EPA on the proposed plan until April 10, 2023, in the following ways: Email comments to EPA’s Gavin Pauley and Carter Jessop.

Printed comments can be mailed to:

Gavin Pauley, EPA Community Involvement Coordinator
75 Hawthorne Street (Mail Code: OPA-2)
San Francisco, CA 94105.

Mailed comments must be postmarked by April 10th.

Oral comments can be left on EPA’s voicemail box at: (800) 231-3075.