California Sales Slow as Pending Contracts and Listings Fall Together

40% of data centers are canceled or delayed because people are idiots. All right, good morning everybody. I'm Ed Parko. That's right, I'm back. I was gone for a few days. I guess Mike didn't fill in. He forgot how to do it. He forgot how to fill in while I was gone. He's Yeah, whatever. You just don't want to do it when I'm gone. Uh a lot of news this week. Tell me about the news. Well, we had uh what do we have? Uh Remax is getting rid of Motto Mortgage. You know that? I didn't even know they had it. Yeah, it's in some of the places. It's their uh it's in franchise Yeah, so it's Remax and Moto Mortgage and I guess they're not going to keep going now that Real bought them. But nothing's going to change.

Nothing will change till we change it. You can keep everything except for your insurance policy that I said you could keep. You can keep your doctor as long as they have a different name and it's a different person. Yeah, and there's a different location. And the other co-founder passed away, Gail Linger at 81. Oh, did she? Linger? Linger? Linger? She's no longer lingering. That's sad. She was a wonderful woman. And the other person was Dolly Parton passed away this weekend. When I was leaving yesterday, Texas, all the flags were at half mast. Half mast. Well, they're half mast in DC too because of Dolly. And then another star Oh, uh Tim Curry, Rocky Horror Picture Show, um fame and and and It, he was the clown in It.

Yeah, nobody knows who that is. Oh, plenty people now. Well, there was because we could keep going. There was another lady uh lady who passed away. I was just talking Dolly and then the Remax because I brought it up. Okay. All right, uh we had I haven't heard that news. Yeah, well, that's breaking news. And uh because I also created my AI Jerky this week. Oh. That was that is all AI news related that if you want to watch certain things and know how AI is coming for them, you can put it in. Just go to aijerky. com and sign up. It's actually pretty cool. I finally been working because it's something I wanted to do a while back. Wow. Is it your AI body? My AI body? No, it's just the AI Jerky that just does this stuff.

And basically I started it a few months ago then I finished it at the event because I was going to do SMS to start and that's a pain in the ass to get going. I just did email for now. We'll have SMS in 3 weeks. That's the texting. SMS. Yeah, single messaging system, something like that. I don't know. Anyway, we So this week uh where did it go? I have to go back over here. I don't know. We uh inventory went is up 3,721 as of last Friday. That's 874,784. Oh my god. It is now a buyer's market. That's funny. And then uh no change still 63 days on the market. The median price went down by 2,500 to 442500 and price reductions are up another almost a quarter of a percent. It's as much as I used to get on my direct marketing.

Uh and it's 4. 97%. So it's going to be 42 by next week. 4. 97. 41 41. 97. Yeah, so it's like almost there. We can't round up. Just round up to 42. So that's kind of what's going on with that. I know you have other things, so I got a thing. What thing do you have? Let me show you this thing. I'm going to show you this thing. This thing says Oh, we're low. Yeah, 788 active listings in the county of Stanislaus. That's not bad. 378 pending, so we went up about 30 uh from the last time we spoke. And 228, so we probably closed 48 more since the last Yeah, since you've been gone. Um Since I've been gone. Gone, gone, gone, gone so long. I've been gone, gone, gone so long. Yeah, so I mean we still got three more days in August and then three more days to report your closing after the 31st.

So I bet we get into the 250s. Let's take a bet. I bet you $1. 22. I say 261 is next month. Okay. September. Yeah. Yeah, I think it'll be picking up. Um so one of the things uh you know Worst came out and said some things and basically said nothing because he's like I don't want to give you information because I don't need you don't need it. It doesn't matter what we do, you're going to take it the totally different way anyway, so I'm not going to talk anymore, which is how it used to be. That was Greenspan. And how they would know about Greenspan is how big his briefcase was when he went to meetings. I'm serious. That was the talk that they knew something was going to happen by how big thick his briefcase was.

Yeah. Yeah. Wow. Yep. They started trading stocks right then. Oh look, it's a thick briefcase. Well, that's the thing about my AI Jerky. So if you have certain stocks you watch and you want to know what's going on with them, it'll it'll give you that AI for those what they know. So it it finds all the news that's out there. There's like 75 different play thousand places you can get that from and it just grabs it all for you so you don't because there's no way to read all that stuff or stay up online on it. Uh what else? Fed, inflation doesn't they don't know what's going on. No one really does. There was a lot of news this week, but I haven't been here, so I was trying to get it. Do you know what happened this week?

Um I know what this says. Median existing home from NAR was uh 434,100. Median new home price from the census is 393,800. New construction is 40,300 cheaper than resale at medium right now. So you can buy a new home cheaper than you can buy existing home. However, you got to put blinds in it, you got to put backyard in it, so it's not cheaper. Yeah. You got to put back in it. That's all the plumbing in. Yeah. It's cheaper on the surface. According to what this is saying, builders are buying the market. Let me give you $30,000 to buy this home. And they're sitting on almost 10 months of unsold homes. Oh, inventory. That's nationwide? Yeah, that's just wherever they're at. Yes, because we don't have much here.

Yeah, so that's uh that's pretty sad. K. Shiller came out this week and uh they said it was uh we've had the strongest acceleration since 2025 since June of 2025. Wow. Wow, that doesn't say much at 1. 6%. It does not. Yeah. Um what is um What is I'm sorry, I'm not I'm not Cornac. I'm sorry. No, I know. I know. And I don't even have an envelope up on my head, but I just went blank. I hate when I do that. Yeah. Yeah, um it'll come back to me. I'm trying to multitask. I got a Well, don't. That's not good for you. I got a I got a photographer um scheduled to do some pictures up in Jackson today and these shitty skies and there's going to be drone activity up there too. They're not going to bomb anything.

They're just going to take pictures of the overheads. Or she just want to know what the skies look like up there because it's So what's why does it have How would she How would you know? I I just texted my seller. Apartment list report uh reported that rental prices on new rents rose by 1/10 of a in August, 1/10 of a percent. That's nothing. Yeah. Um and that's in a row. That's the first time we've seen a positive since August of 2022. So go rent. It's cheaper. It is. Yeah, much cheaper. Uh did PCE come out? Personal consumption expenditures uh the July report Yeah, so that came out. I knew it was coming out this week. Uh showed that inflation rose 2/10 of a percent during the month on rounded basis and when talk taking out the two decimals, it was only 0.

16%, which is exactly 2% annualized. Year over year was unchanged at 3. 7%. Both figures were in line with the market. The core reading strips out food and energy prices rose 0. 24%, which is rounded down to 0. 2%. Year over year core inflation was at 3. 3% again, which came in. So basically it came in as like they thought it was going to come in at. So that was a bunch of nothing. Nothing burger. A nothing burger. A lot to do about nothing. I got some state numbers that ended the week of uh August 22nd. So that was last week, wasn't it? Hold on. Can I throw one more thing? So new home sales which came out on Tuesday uh which measures signed contracts on new homes, not closings but sign contract, fell 10.

5% in July. Ouch. Did it hurt when it hit? I bet it did. Okay, you're one of those people. Are you an angel? Yeah, no, I'm You're a little, you know, your little pickup lines. Yeah. Yeah, exactly. Aren't you an angel because you're giving me a woody? Um That has nothing to do with I know. Are you a carpenter because I have a wood for you to handle. A carpenter. Um yeah. Okay, did you get messed up there? Karen Carpenter. So I want to do the state numbers uh week ending August 22nd. 442 closed sales per day. That's down 13. 6% from the previous week. Youch. Uh 471 sales per day, pending sales per day, 13. 4% negative. And 586 new listings per day. That's down 11. 3%. But there's some positive numbers over here if I can get this mouse to go over.

Um That would be you. Days on the market increased by three days. That's positive, right? 29 days median on the market right now in the state of California. Well, it depends on how you look at it. If you're a buyer, that's positive because I have I have a buyer just this house has been sitting there and wrote an offer and they're going to accept it. Like Oh good, so they're chomping at it and they probably got a better price. Mhm. And they got closing costs and they got all the stuff we keep talking about. Everybody's like but you keep saying go buy a house, go do it right now. Yes. If you're ready, that's the best time to do it. If you're ready now, go buy a house now. Um and close to the state numbers as far as reductions uh 41% flat.

They rounded down um which is up 0. 5%. And then the replacement of inventory is still at a third to you list two-thirds of a house to be able to replace one. Doesn't make any sense, but anyway, that's what they said. K. Shiller and FHA released their the report this week and basically I'm just going to tell you the overall. Year over year uh home values rose 1. 2% to 1. 5%. So that was Yeah, so that's in line. Yeah. But really it's not I mean it's still positive because you're still making money off your house. Um ADP employment data came in weaker. Um there were 11,750 jobs created per week over the previous 4 weeks. Well, the slight I'm sorry, that was a slight increase from the previous week.

Uh was 9,500 job data, but today's report that or that day report um puts the job pace at roughly around 50,000 jobs for the month, which is the weakest it's been, you know, for a while. Really? Yeah. For a long while. Yeah, so I mean that's pretty much we trying to run through everything today and not go on for 25 minutes. Yeah, but we could. Yeah. Hey, we have two listeners right now that are watching the show that we're on on the radio. No, on the radio show before. So Chuck, our notorious Chuck Lynn and then Kyle Mislakowski. Or Mice Lakowski. We've had a bunch of people reach out wanting to be on the radio show. Um if you're a if you're trying to push your business, we're not going to have you on the radio show.

It's got to be some knowledge for our people. Yeah, unless you want to advertise on a monthly basis. Right, you actually and we're being pushed um by our studio to get that together because there are some people who wanting to do it and um they wanted me to talk to you because uh there's a real estate company who wants to be a sponsor of our radio show, but it's not yours. So you might want to give them first right of refusal. I don't care. Yeah, I'll talk to the boys. Give me the information. I'll talk to the boys and say hey, this this company wants to do it. We're not going to tell you the company. I know. Yeah. So No, we're not going to tell you here. Right. No, I'm not going to tell you either because I don't want you to go oh god, we got to we got to do this.

I'm just saying there's people coming um that will sponsor and we they want us to get those sponsors out there and get that thing covered so we can get syndicated. That'd be nice. Yes. So that's coming on. But she that was our Mary Matthews who approached me last week and I said talk to me in a week when I get back and I'm hungover. My liver's like you got to go home. I like Mary Matthews a lot. You got to go Yeah, I try Last time when we lost our other person, I wanted her and they gave me the other guy. I'm like okay, that's I don't want that. Yeah, you tried to get her. Yeah. Anyway, she's really good. I wish she does. Cool cool cool cool. All right, that's pretty much all I have for today.

I know we could go on for a lot longer. Um but you um I know people forget about it, but USDA is still out there and still works at 100% for people who can buy in rural areas. Rural areas, Waterford, rural rural rural Keys, you know, some of even some of the new homes in some of the areas that they're building up will qualify for that because it's they're building in rural, you know, non not like Modesto. You can't do it in Modesto. You can do it in the old old part of Riverbank going out that way. You can do it all in Oakdale, Jamestown, Sonora. Salida. You mean Salida? Yeah, Salida. Exit exit. No, not Salida. That's I think that's built in. You have to It It's that way and that way. Okay. Gotcha.

Northeast, east, south. East and south and not yeah, so I mean smaller town. But it's like a lot of people move there anyway. Yeah. But we forget about I totally forgot. I did so many of those up in Tuolumne County back in the day. And I just do all my 100% VA and that's what I focus on. And um if you're an agent, don't send me all your people. Just send me your vets. Hey, just a real quick shout out to lenders who you know, they oh, you got a lot of repairs on the property. You guys should hammer out the disclosures or the Okay, so what you're saying is the lenders who don't know what the hell they're doing. Right. Yeah, not every lender, but lenders who say, you know, I know we have a time frame and we have to get the appraisal in by a certain amount of time per the contract.

Uh but you know, let's just float the appraiser out there for a while while you guys negotiate repairs. No, the appraiser is most likely going to call something and maybe calling something that didn't get called on um the inspections, you know, that nobody was really looking at. And now you got to satisfy the appraiser. Just happened. They burned 10 days. I'm I'm I'm going to tell you right now that's a lazy ass lender who didn't want to do anything and had nothing to do with the fact of repairs. He there was they were behind on everything and didn't do it. Yeah, and they just said I can hide it this way. Yeah, I know what he was doing. Frustrating. I said yeah, guess what? Appraisal comes in, then I'll negotiate with my clients.

That's how you That's how it works. Period. That's how it works. Yeah, and we actually closed it. Cuz you need the value to be able to move forward to see if you even want to if it's going to come in a value because you want to negotiate everything at one time, not multiple times. Let's go back. Absolutely. Not go oh, now we got to do this. Cuz the the seller will go you're nickel and diming my ass. Stop it. Yeah, and we did that anyway, but at least we did it all at one time. That's not nickel and diming them at one time, but that's what they're like. You just came here. You just came here. Yeah. Yeah. Anyway, closed it. Both sellers are happy, so that's all we care about. But and and if you're a first-time home buyer and you're buying, uh be careful by biting off too much.

Um I have some younger clients who they both make a certain dollar amount and the new payment is going to be if you just look at gross, you oh, no big deal. Look at your net. And if it's 50% of your net, Oh. that is really difficult for you to bite off and live comfortably when you've done not done that before. Uh and just be careful doing it. Um it's just I mean we can push ratios and everything, but you have to still be okay with making that payment. If you're not going to be used to that, I have a young couple who I'm like they they were they were good at this one price point, then they pushed it up to another price point. And it's funny. It's like hard to get a hold of them now. I think they got buyers remorse.

It happens. You know, just be careful. You have to make sure that you're going to be able to call, you know, pay that payment. Yes, sometimes you have to push and do different things to get in right away, but just be careful. It's I don't want to make money off of you just to make money off of you. You have to be good with that house, good with everything because that's how we get referrals and we want to make sure you stay there and and move on. And be happy. Yeah. Come on. That's not the song. Happy happy happy. I know. I wasn't going to sing that one. All right, be that way. I hear it. All right. It's in my head. No, that's the lawnmower. All right, everybody make it a great day. We'll be on the radio tomorrow.

It's actually uh I don't know what it is tomorrow. Uh Best of. You weren't supposed to say that. Now no one's going to listen. Oh, they'll listen cuz it's a really good one. It's the best of. And I I think we picked up Wednesdays now in the evening uh the replay. Hey, Chuck liked it. Look at look at look at. Chuck liked what you said. Yeah, I'll like everything we said. Yeah, look at that. All right, everybody make it a great day. And if we can help you in any way, reach out. Uh and again, agents, don't send me all your clients. Just send me your vets. Vets. And reverse mortgage for purchases cuz that is amazing and people love that. All right, make it a great day and we'll be back on Monday.

Got it. It seems like we've been here all week. Be the best We have. Be the best weekend ever. Well, I can't believe we're going to be in the 80s coming up, low 80s. Yeah, you're you're happy. Yes, cuz I was at 108 104 to 108 with a huge amount of humidity. Yeah. I got to see parts of Dallas though. The grassy I understand the grassy knoll Yeah, I finally got to see where JFK was supposedly shot from the books depository. And then the grassy knoll that supposedly really is where he got shot from is is hidden now by concrete. I wonder why. I don't know. I don't know. Erase history. And I got to tell you, Texas barbecue ain't that good. It's it's different. It's not no, it's just their their brisket was not amazing.

The ribs were good. The sausages, give me a break. That was horrible. And their Mexican food, it's a little different. It's not really Mexican. It's Tex-Mex. Yep. Yeah. When I get fajitas that they put on top of mashed potatoes, that's a problem. At a Mexican place. That's not what I'm looking for. Mashed potatoes. I'm like what the hell? Yeah, it was That's freaking crazy. All right, everybody make it a great day. We'll be back on Monday. Bye. Peace out, brothers and sisters. Bye.