Builders Lean Toward Multifamily as Rates Rise and Buyers Feel More Pressure

And now live from our smokehouse studio, it's time for Real Estate Jerky. All your real estate questions answered by our provocatively lean expert host, Edward Ed Parcaut, MBA, veteran and president of Lending for Living. We'll give you something to chew on. Real Estate Jerky is on now. Welcome to Real Estate Jerky. We'll always give you something to chew on. I'm your host, Ed Parcaut, MBA veteran and president of Lending for Living. Our studio is located right here in Modesto with our producer, Mike Murray, and we're proud to bring you the latest updates and insights on the real estate market in our community. Thanks to our partnership with iHeartMedia and the station KFIV, you can tune in and never miss an episode by subscribing to our podcast.

Stay up to date by following us on social media. Joining me today is Mike Kelly, a REMAX executive realtor. Are you ready to get going? You done with your texting over there? I'm ready to go. I think I got everything taken care of, so now we can just do radio. That's great. That's great that you're so busy. Well, it's a change. Actually, I have to say for, and we'll get into all the numbers and everything else, but I am super, super busy right now. Um, I know it's May, but usually, you know, April, March and April were great months. Probably the most we've done in, in this year than we've done in many years and many of the different months. And, you know, more. I don't know if I'm coming across, across there.

But now May is not so busy, but I still have people getting into contract and buying stuff because they know there's an opportunity here right now even though rates are up and we'll get into that. When other people aren't buying, it's a perfect time for you to do so. That's right. All right, uh, inventory. Do you want to get into this right away or do you want Last weekend was, uh, the, uh, Porchfest in Modesto. Did you go around all the different places? Correct. I did. I made it to about four homes. Um, the bicycles and the golf carts were absolutely crazy and it was hard to navigate most of the streets even though I was on a bicycle as well. Yeah, I don't know if they don't understand this, but golf carts are not allowed on public roads, but for some reason they think it's okay on that and the trail.

They first started, um, last year. No, they've been, see, they've been in my neighborhood for years. Well, we saw lots of them last year and, um, somebody, the creator of Porchfest said, no more golf carts. There were tons. People were like, oh, except for me because mine's pretty cool. Except for me because I don't listen to what people say. It was, it was, I heard some great bands. I heard some really not so great bands. They need to practice more, but it was all in great fun. So. Good. There we go. Yeah, what are you going to do? I think it's a great event. It really brings neighbors together kind of. Kind of? Well, the problem I have is when we went on our walk afterwards the next day, uh, there are about 12, 14 Coors Light cans on the, on the corner just on the floor, on the ground.

I think that's absolute BS. People have to, um, what do they call it in the army? Um, pick up your own brass, pick up your own trash. Take your stuff with you. Don't, don't destroy our neighborhood because you came here from a different neighborhood and you don't have the concern to take care of people. And you don't care about this neighborhood. Yeah, well, they'll have to cancel Porchfest if that keeps happening. Yeah, we, uh, we always take our own trash with us. I, I just take a jug of like, uh, you know, what's that, sangria? So we, so we bring our jug back home with us. Yeah. We took sippy cups, but they run out after a while. But the problem was it was so crazy, uh, just so many people flying all over the place, not looking.

I was coming down Roseburg back to my house after I went to, because I didn't go around. I was too, unfortunately I was like, you know what, I can do this in my garage today because it's only going to be 72 and let me finish this up and move stuff around. And I had to go to Home Depot, came back and there's lady coming across Roseburg, stops in the middle of Roseburg with her electric scooter thing and it's like, okay, waiting for people. It was like two minutes before somebody came up. It's like, lady, stay over there on the stop and then go across when there's no traffic. Don't, you can do that on like the smaller streets, but not on a major thoroughfare like Roseburg and Orangeburg and anyway, I'll stop complaining.

It was a great thing. I could hear a bunch of bands from my house and, and one was really good. The other ones are, you know. When your truck would bump, bump as you ran over, but didn't bother your truck, did it? No, I have big tires. I have a good clearance. No, I just, it's like people understand the road, understand what you're supposed to traffic stuff. I want, I want cops on every road during this thing next year just to get people to do normal stuff because, and because even the trail now, when you're walking the trail, you have these kids on these little scooter things and they're they don't respect the road. You know what I loved is, um, the teenage boys who were on their pedal bicycles doing wheelies down the middle of the Virginia Trail and you know, they're, they're weaving all over the place.

I'm thinking, oh, they're going to get hurt. Oh well. Uh, no, I got into it with those guys because they're coming right at you and they want you to move out of their way. I'm not moving out of the way. And then they wanted to, then they're like, well, you, you tried to hit me and they had their video and I'm like, don't even go there. Because I brought out my phone and I was like, you know, don't mess with this is ridiculous. And of course they wanted to, you know, be all pumfy, whatever. That wasn't this weekend, that was a while back. But people need respect and all it is is when these kids are doing it, take video and hopefully their parents care enough to take care of everyone. Just like the stuff that happened in that Chipotle where those people, kids were throwing stuff around and having the brawl.

You didn't see that? No. You don't watch TV, I take it. Um, it was all over the place. So yeah, it's like get control of your kids. If they're not reacting right, you should have to pay for it. You're listening to Real Estate Jerky. I'm Ed Parcaut, MBA veteran and mortgage advisor at Lending for Living alongside REMAX executive realtor Mike Kelly. Because I know when my, yeah, when my kids were not acting up and they did something stupid like that, I want to know about it so I can correct that. But not everybody's that way. Nobody cares. Oh, they're just boys being boys. They're just kids. Yeah, but the problem is they get away with that stuff, then later on in life they do worse. Well, they think they can get away with everything.

Yeah. All right. So what are we normally talking about the first segment? You usually have national numbers in the first segment. So we're up 10,810 last week, 777,913 inventory nationwide. Median list price is up another $99 to 449,999. They couldn't just be 450? Yeah, median days on the market still at 56. Price reductions went up a little bit. We're at 36. 51. I think a lot of that has to do with they don't start with the right price point and or in certain markets things aren't moving as fast as they want and they need to sell. And I'm seeing that and it happens all over the place. If it's priced right and it's in a good market, it's going to sell. Because if they can sell a burned out house in Torrance for a million dollars, you can, you can still do stuff.

Where's Torrance? Down south. LA County. Yeah, I think I painted a money mutual of New York building down there in the mid 80s. I was going to say it wasn't recent. No, it was a long time ago. Recent, there's the word I'm looking for. Yeah, um, and so I, I still think and we'll get into your numbers in a minute, but we'll get into this even more later. But we recently we had increase in the 10 year and the 30 year rates on bonds and like the 30 year went as high as the highest it's been in 19 years when they said it was pre iPhone era. You forget about how long iPhones really been here. It's not been around that long. And the problem with that is if, you know, if those things keep creeping up because of the oil and because of what's going on in Iran, which could be over right now, we just never know.

The issue is going to be that it's going to affect lending again kind of like Biden did with what he did with the inflation and that's basically what we have to worry about. The 10 year went up but then during the week it started going back the right way again. So yeah, I mean it's, and again it's all. Where's the 10 year now? Uh, it's higher than it was. I couldn't tell you where it is right now because it doesn't come out on Saturday. That's right. Yeah, so I can tell you on Monday if you guys want to know the update, come watch us on our show on Monday at 8:30 in the morning. But Monday's a holiday so we won't be there this Monday so you have to come on Tuesday. Yeah, and that, and that daily show that we've been doing, the podcast daily show live on Facebook, LinkedIn and YouTube, uh, we hit our 50th 553rd 555 as of Friday.

Yes, yeah, episode and the radio show we've been, I've been doing since August of 2018. No, did it for almost eight years, whatever that. Yeah, 2018, August of 2018. Wow, pre pandemic. This show has been going on for a while and you guys still listen to us. We really appreciate you. Yes. We do. I don't know why you listen to us, but we do have some, we have some information. We sometimes have really good information. Yeah, and then sometimes we just talk about stuff we care about. I just want to say we've had that many shows and what's our common theme? Buy now. You should always buy a home when you're ready, not with when the market's ready. Because over time your mistake will not be a mistake if it was a mistake.

You know what I mean? If you bought too high, eventually it won't be. It's just like right now with the house, you know, with our rent, with our mortgage payment, the, you know, rents are higher than our mortgage payment now and that's what people don't understand on those new apartments and stuff like that. Get your real estate and mortgage questions answered by the experts at Real Estate Jerky. Contact us at radio@realestatejerky. com. Call Ed Parcaut myself at 209-404-1915. Reach out to Mike Kelly at 209-968-5633. And we're in the first thing we talked about national numbers about inventory that it's up and we talked a little bit about where everything's going and what's going on locally and with California.

Statewide we look at Redfin usually because it's just single family homes and they're quoting 103,574 single family homes on the market. They're saying that the number of homes have risen slightly by 3. 2% over last year's same month. And then of course realtor. com has the whole conglomeration in there. They're looking at 155,034 homes, but that's single family one through four. So that means duplex, triplex, fourplex, condos, townhomes, all those things. And that number was what? 155,084. It has moved up. And then if we just jump to Stanislaus County, which is where I live and work mostly, we have 715 homes active on the market. That's every price range. And what's close so far for the year?

Well, for the month from May 1st to today, we got 190 closings, which is lower than March and April by that time. Yeah, because we had 356 total in or 320 or something like that those months total closings. Right. Right. Now this is just what's on our active MLS, MetroList Service. But our pending sales this last week fell from always being in the 400s to 383. So kind of tell me that we got a little bit of a slowdown and that's why there's an increase in listings. We've been in the 600s most of the year. We had much lower rates in March and April than we do today. I mean, and it's not like they're through the roof. They're still lower than last year at this time. But the thing that's messing everything up is the oil.

The turmoil. Yeah, that and oil prices and because that's a messing. I saw it the other day when I was talking to my wife. We were looking at something and they were talking about how sales, you could just see hardly anybody was there buying certain things and I'm like, well, with gas prices almost so much higher, I don't want to say double, but pretty high. I mean, diesel the other day when I filled up my truck was $7, I won't say a barrel, a gallon. And you know, normally I was like five, which doesn't seem much, but people don't have the extra money to buy other things right now and do other things because it's being eaten up by fuel prices and other things. And that's where you run into issues here in California.

We need to pump more oil and we need to draw more oil in California. We have the places to do it and we have, we just need refineries. Well, and then we we look at those fuel prices. Um most groceries are delivered by a truck, right? Diesel truck. Diesel truck at $7 a gallon. Can you imagine I mean And I said they unless they did their whole fleet electric. Yeah, which they probably wouldn't be able to make it to most of their route. Um UPS does fine. Local routes, yeah. Yeah. Uh I almost lost track, but can you imagine why everything's going up except for the price of eggs now? Because they they're not slaughtering those roosters and chickens. Yeah, well Roosters don't lay eggs, do they? No, they do not.

You can check, though. I will. Yeah. I mean pending home sales came in. We talk I think we talked about this earlier on our our other show. Um April rose 1. 4% beating the 1% estimate. March was revised higher from 1. 5 to 1. 7. So you look at today's numbers and, you know, I I think May's going to be less just what we were talking about because rates are a little bit higher because I think rates last we checked according to Freddie and Fannie it was like 6. 65 out there that we saw rates. And that used to be 6. 3. They used to be 6 and 1/8. And that's, you know, again, it's all going to depend on how much money you're putting down, loan amount, your FICO score, and all that stuff. And the difference today is we're able to use FICO or Advantage score for you.

And depending on certain situations, um it can make a totally different in your transaction. Advantage score can be so much higher. I had somebody else the complete opposite. FICO was higher than their Advantage score. Yeah, so that was like wow, so that's something different. So we when we run credit now we run both. We get both those scores. And I had a gentleman who was at 747, which normally I'd say anything over 740 doesn't matter anymore. Well, he at his Advantage score was 838. And it made a difference. And I was like wow, that's something different that I hadn't seen before. Yeah, that's a pretty sweet FICO. Well, it's not a FICO. It's a Advantage score. It's not a FICO. Well, yeah, semantics.

That's like a doe and a buck. Totally two different animals. They're still Selling the same species. They're still in the same species. Yes. A doe and a buck. Yeah, but there'll be something surprising if you look at the wrong thing. Oops. Oh gosh. Are you there? Are you okay there? Did I throw you off too much? You just threw me off a little bit. You know what the statewide medium home price ran into? Or is that now? No, not really. A ceiling? You ran into? It It is 914 810. Wow, so it was 890 something. It was 888 um last week, I think. It's because that burned down house in Torrance closed. Torrance just drove the average price up. Yeah, because it was a burned down house for a million dollars.

Yeah. Yeah, but it must be the best lot in the world. Had to have been. You're listening to Real Estate Jerky on KFBK, NBA veteran and mortgage advisor lending for a living alongside REMAX executive realtor Mike Kelly. Yeah, I mean what are you going to do in California? Uh there we I think we got some stuff from our producer about affordability in other places. And I think the issue you're going to run into is that in other place You have to go to other places to afford to be able to afford homes. Uh there was a WalletHub dropped a 2026 rankings of the most affordable US cities to buy a home this week. They looked at 300 cities across home And they looked at home prices, taxes, vacancy rate, and rent-to-buy ratios.

And then we'll go through the top 10. What's the matter? What I put? Yeah, they put it's all great places to live. They're the best. Yeah, unfortunately not a single California city was in the top 30. Imagine that. Yeah, imagine that. Not even Crescent City. Yeah, and that's that's got to be the cheapest place you could buy beachfront property. One in Florida, but again, uh Detroit median home price is just over two times the median household income, second lowest in the country. So the number one So number 10 place is Clevesland, Ohio. Why do I have to check to see what state that was? I don't know. Maybe one of those brain things. Yeah, so you I don't have the article up. Do you have the article up?

Well, I remember what number one was, but no, I don't, but I will in 2 and 1/2 seconds. And number nine is Indianapolis, Indiana. We had Augusta, Georgia as number eight. Augusta. Yeah, I like that my way better. Memphis, Tennessee. A lot of people moved to Memphis. And it's number seven right now. Well, that's because that's where Elvis Presley was from. No, I I think they like the amenity. Uh number six is Pittsburgh, PA. Wow. That way you can watch the Pittsburgh Steelers. I had Scrapple for the first and last time in Pittsburgh. Number So number five was Akron, Ohio. You better hurry it up because I'm almost through all these, okay? Um any additional information you want to put in about what I was talking about so far?

I got it. I got it here. No, nothing. Not Not a thing. What's number three? Well, you want to do number four? Which is I think a surprise. You want to do What's number four? Yuma. Yuma, Arizona. And I think three's going to be a surprise. It is no longer a surprise because you let the cat out of the bag. Number one is a surprise. Number three is surprise. No, what's number three? Surprise, Arizona. Surprise, surprise, surprise. I love Gomer Pyle. I didn't. Well, he was such a dork, but he he had a really good singing voice. Yeah, but you also like the Three Stooges and you also like the the Knights the Knights people. What was that uh I'm a complete The what? The ones about the Knights uh Oh, Search for the Holy Grail.

Yeah, what were they Thank you. Yeah. Monty Python and Search for the Holy Grail. I I There was I was Yeah, but I I I did like Benny Hill. Oh, Benny Hill was hilarious. A little sexist, but it was You think it wouldn't survive today, but the reruns do. Neither would Airplane. Oh no. Yeah. I picked the wrong time I picked the wrong time to stop sniffing glue. Yeah. A hospital, what's that? It's a large building with patients, but that's not necessary. That's not important. All right, where are we at with the 10 most affordable cities of WalletHub? And they And did they break it Keep going. Go with number two. Number two is Detroit. Detroit where? Michigan. Yeah. Guess what number one is? Well, Detroit, Michigan, they're also offering you 15 grand to move there.

Did you know that? Yeah, you've got to live there. Yeah, of course. You have to live in all these places. Yeah, I mean you could be the the the catalyst that makes the change, makes the difference, and makes it a good a good place again. Um I want to jump to number one because I don't know. My biggest question about number one Flint, Michigan. Yeah. Can you drink the water yet? Oh, that's the one that wasn't that the one the train derailed? That's where they were dumping all kinds of stuff into the the water. Oh, is that where that one was? Yeah, and they were people were getting all kinds of cancers. And then uh Julia Roberts, she sued them all. Cuz I don't remember the person she was playing.

Aaron Aaron Brockovich. There we go, Erin Brockovich. Yeah, well that's like when you go through the when you're on your way to Vegas and you go through that city that uh she did originally in the movie, the first one that she sued. Uh where I want to say paradise, but it's not paradise. Anyway, you go through there going man, this is such a horrible place. And that all happened there, you know. Yeah. People only live there to work at the company. And they probably got sold their soul to the company store. Something like that. Yeah. That was like the the dam builders, right? Yeah, but the low You can get a house there for $59 a square foot. But you got to import your water. Yeah, bottled water, but then the plastics are going to get you.

Yeah, and then Detroit, Michigan's at 89 a square foot. That's a big jump. How far apart are they, I wonder? From 89 and 59? 30? Oh, we can't play we can't play that song. All right. Uh that's You know what? I don't know about Most of these places you again, like you said, do you have to move to these places and be okay with that? There's a reason why they're affordable at these price points because they're not the best places to live at. Yeah, exactly. Uh this is Real Estate Jerky on PowerTalk 1360 KFYV and I'm Mike Kelly, REMAX executive realtor here in the Central Valley right alongside Ed Parco, the NBA veteran, mortgage expert, and president of Lending for a Living. And we were just discussing uh the top 10 least expensive places to live in the United States.

How about How about that? I think we were first talking about that we did over 400 shows and you still can't do opener and close very well. I did the close okay. The opener just got me tongue-tied. All the sudden I wanted to reverse the Lending for a Living. Yeah, whatever. It's time to call me. Who cares? It happens. It happens. Uh there was a credit score watch an AOL piece. I'm like AOL? When did they write it? When did they write it? Can you get a more updated stuff for us, producer? Oh. Let's see. Did Brett Uh is that even out there? What's that? The AOL piece? Yeah, credit Yeah, the It is an AOL article. Do people still read those? I didn't know they still wrote them. Yeah, well I'm starting to slow down there.

Okay. Yeah. Uh my friend's credit score dropped 50 points overnight and we don't know why. I know why. Why? They probably didn't pay their bills. No, they probably closed a credit card or they did something or yeah. You see, a lot of people think if they pay off a credit card and close it Oh, guess what? That was one of the things. A credit card closure can move the needle, too. Yeah, I had somebody during a refinance cancel a card and it dropped her FICO score 80 points. Oh, that's a lot of points. But the positive thing is I was able to use that story in my book. What things not to do. Exactly. And when she read my book she goes that was me, wasn't it? No, that was somebody else cuz I had a different name.

Yeah. Yeah. And by the way, if you don't know I did write a book Financial Freedom Building Personal Wealth Through Home Ownership. You can just go to Ed Parco the book if you want to buy it or if you reach out to me I will send you a signed copy. Ed's got a great looking signature, so you probably want to do that. Yeah. And don't rule out fraud on that. You know the other thing you should never do if you're married and you're purchasing a house for the first time? Don't spend your uh down payment and closing costs on a pair of boots. Did somebody do that? Oh my god, yeah, they did. When? What year? 1992. Uh and it was a How much boots How expensive were these boots? $5,000. That was their That was cuz they were getting their closing cost paid through the uh Nehemiah program.

Oh, Nehemiah. That's not even around anymore. No, it's not. Um and they had to come in with uh I think $5,300. And he said by when? Well, tomorrow would be nice cuz we're closing in 2 days. Uh he looked at his wife and said I don't I don't have the money. She's like why? He said well, honey, these boots I'm wearing are were $5,000. They filed for divorce that day. Yeah, that was a long time ago, too. It was a long time ago. Those have to be like 10,000 boots today $10,000 boots today. I hope he still has them. I doubt it. I bet she kept them in the divorce. Put them on eBay and sold them. I don't think eBay even existed back then. No, it did not. It did not. Yeah, and neither did uh Facebook Marketplace.

Oh thing, yeah. You actually had to do a garage sale back then. And I don't think you're going to get the money. Yeah, you're going to get pennies on the dollar. Anyway, it was an It was an interesting thing. Yeah, well I mean sometimes people You know, I've had them where they went and bought a car. And you tell them don't buy anything. But I needed a car. Well, you should have talked to me first. And And how long did they have to wait before they closed escrow? Well, I told them Luckily you have the 3-day thing on cars, so I don't take it back now. And start doing it after the fact. Then I had one person who actually came to me and said hey, my truck just died. It blew up my I have to get a car.

What kind of a payment can I afford to where I still qualify for this transaction? Oh, well that's smart. And so we ran the numbers and they went and got less than that. And so it was still fine. You just have to talk to your lender about what's going on cuz we tell you don't do anything during the transaction. But sometimes you have to do something. You have to get to work cuz if you don't show up to work uh we're not going to be able to help you. And that's another thing. If you are hourly Do not during the month before you're going to buy or the month you're in not work a full 40-hour week. If they say, "Hey, you can go home early," you say, "No, I'll be here until 5:00. " Because we need to If you show an average less than 40 hours, we have to average your income, and people don't understand that.

So if you show like 38 on there, say 39, you don't show the 40, you know, you have 40, 40, 38, 36, whatever, we have to average that income because you're hourly. And but if you're 40 all the time, we don't have to average. We can use your current stuff. So be very careful with that. I had some people who did that, you know, they were construction people. Uh and that's why I don't usually do construction people's loans in December, January, and February during rainy season because they have no idea if they're going to be working or not working, and you run into that. So construction people, if you're going to buy a home, April, May, June, July, August, September, October, the months that you're that has no rain if you're working.

Now, if you work outside and it doesn't matter if it rains, that's different. True. It's so volatile. Yeah. Yeah. The other thing you shouldn't do, and I had this happen, is um two weeks prior to close of escrow, quit your job. Well, I actually had somebody do that, and I will You're listening to Real Estate Jerky. I'm Ed Parcaut, MBA veteran and mortgage advisor at Lending for Living alongside RE/MAX Executive Realtor Mike Kelly. Back to what I was going to say. So I had somebody who we checked and we and the son had to get a new got a new job during the loan process. Okay. Didn't tell us. We found out when they verif- ver- you know, at What happens is when you go to docs, we do a ver- a verification of employment with verbal.

They just make sure you're still there. And we always do it 10 days before close. And and then so they checked and he was no longer there. Oh, he was at a new place. And all we had to do is get his first He had to work one day. Oh, just And so they started working and then we just got to verify verify employment that he is working, his hours, whatever, we were able to close right after that. So you can do this stuff during the process, but you have to let us know so we can do what we need to do to make sure that it's not a problem to close. Cool. Or may- yeah, exactly. That's it. We just I Life happens. You have to be able to still do your life during this period of time. Another thing I'm going to say is during your period of life, don't think your credit card credit card Don't think your credit score is the most important thing in life because it will destroy you if you do.

Right. Yeah. Tell me how. Because people if you if something happens in your life and you drop 80 points, you freak out. I have people that, "Oh, I have a 800 FICO score and it's who I am. " And if that's who you are, you're going to have a problem because things happen in life and we work around it. It's not a big deal. Uh sometimes you might have it where your FICO score dropped to 640 because of something you didn't know or you didn't understand or somebody else got your credit messed up. But don't focus on that as your identity. Just that's part of everything else. Right. Right. What do you think the key is? Communication? Yes, whenever you're in escrow, you tell you tell your lender everything.

It's almost like you're you're um I know more than your priest, your doctor, your attorney, your financial advisor. I know everything. You tell me everything. And yeah, you need to tell me and then you go, "Well, I didn't want you to know because" Well, I need to know because if it's I thought maybe I could hide it. Or, you know, I just need to know to know how to get around it legally if there's a problem. Right. And that's how you have to. You have to talk to your person. Make sure it's somebody that you really feel comfortable with and can tell them. They need to know. I had somebody, "Well, we didn't want to tell you about these repairs or whatever. " I don't care as long as it doesn't affect the house.

I don't really care. Yeah. And nine times out of 10, they're getting credits anyway that are going to apply towards their down payment or their closing costs, right? Right. And then I have one recently that they're like, "We asked for $25,000 in repair. " Well, what are you going to do with it? "Uh we're going to put it towards closing costs. " Oh, really? Well, the closing cost is only like 10,000. So what are you going to do with the other 15 grand? You can't do So what I tell people to do is if there's repairs that need to be done, Yeah, what are you going to do with the other extra? Yeah. put them on the seller side of the CD, find out who's going to do the work, have them put an invoice into escrow, pay them at the before close, and then that way that you can move forward on your transaction.

It happens all the time in certain areas when it comes to septic because they can't get out there and finish that septic probably for six weeks or, you know, 12 weeks depending on when it is. And if it's during the rainy time, they're not going to be able to get out there. No, no, or well, or if they do, they're going to destroy the yard. Right. But I mean, it's if it's going to get fixed and repaired and you do that I had some people who are buying a house, you know, it's like that uh old commercial used to see uh from the guy the real estate guys like, "You can buy a house and you get paid at the end. " Remember that? What was his name? Who was that? Was that Dave Del Dotto? No, that was but it was somebody something like that and he would teach you how to buy a house and get cash at the end.

Oh. I yeah, I remember. Sheet shit. Sheets. Something like that. Something like that. Something like But anyway, that's So I had some people who were buying a place and it had $60,000 worth of work that needed to be done. Wow. And it was just stuff that they could have done over time, but you can't absorb that. You can do a price a price point reduction, but you don't get a huge benefit. Who's going to pay for all the repairs? So they Right. So they put all the stuff on that side on the seller side of the CD and paid everybody and it was fine. And all that work got done and everybody's happy because they didn't have to come out of pocket 60 grand to do stuff. Right. And now you just pick it up from a flipper.

You could do that too, but Yeah. it's much harder. I mean, and the flipper to say that they did good work, you have no idea. I have another one going where it's a place where there is a old well and they have a the house is connected to city water. The one thing they did not do was put a valve in to stop the water flowing into the house from the well. Oh, yeah. Really? It's never been done. It was It should have been done, but it was never done. So prior to the process was to get that done and instead of hiring somebody to do it, the seller decided to do it himself. Mm. But you have to have a permit. You have to have inspections. You have to have certain things. If you're a seller of a property, it's better to have a licensed contractor do the stuff so you can prove to the other side the stuff was done properly.

Period. Otherwise, it's going to have to be all redone again. Right. And that's probably what happened, right? That's exactly what happened. Yeah. That's a bummer. It is, it is. Yeah, but what are you going to do? Well, punt. Real Estate Jerky on Power Talk 1360 KFYV is always bringing you the latest information on the real estate industry. And if you have any questions or comments about our discussion today, feel free to email us at radio@realestatejerky. com. We've been talking about a bunch of stuff today all over the place and we totally forgot that June 2nd's coming around the corner. Um we'll get into that in a second, but let's focus on in the first block we talked about national inventory is up by about what did I say, 10,000?

Yeah, so it's 777,913. You said It is. Oh. Yep. California numbers are 150. 153. And then local numbers Yeah. 155 and local numbers are seven. That's that's right, but our closings locally is a little low, a little light this month so far. There might be a right, you know, right at the end of closing. 15. A little little light for the month, yeah. Maybe we can close about uh 195 of them by the end of this month. Yeah, we just have really good March and April numbers that were way better than anybody expected in our area, Tuolumne County, everywhere because they, you know, Tuolumne had a no winter and neither did Calaveras. So people were buying early and rates were really good. Rates are up a little bit right now, but eventually all this will hopefully go away and it will be much better.

But we always say no matter what's going on, the best time to buy is when you want to buy, not when the market tells you to buy. Right. Exactly. When you are ready to do it, do it. Don't pay attention to the market. You know, in Tuolumne, I bet there were a lot of decks that were replaced because it's the first time that you'd actually see them. Well, that's like one of the ones I talked about. That's what needs to happen. And decks are not cheap. Decks are 25 plus thousands of dollars. No. Labor and materials not cheap and I wonder why labor is a little bit high because of the gas prices. Oh, I just thought because the beer is expensive up there. I used to measure uh side jobs, you know, when I would help people paint their house.

How much you going to charge me? Oh, this looks like a uh three 12-pack day. Yeah, but I mean overall, that's what what are you going to do? I mean, the market's where the market is and you just have to deal with it. And you can't just wait and wait and wait forever. You can, but it's not what you should do. Yeah. I always say the only thing you can't change is your purchase price. I'd say the only thing you can't change is another person. Okay. You can only control yourself. Don't try to control other people. Yeah. Yeah, well, it didn't work the first 15 years of my life. Yeah, well, deal with it. Uh I don't think Redfin predicts a major housing market shift for homebuyers. We're already there.

What do you need to Yeah, I don't need Redfin to tell me something we already know. I affordability uh is things are going to slow down. There's 47% more sellers than buyers. I heard that somewhere else. So I heard there's 50% more sellers than buyers. Well, that's probably sitting on the sidelines, but there's really more buyers than sellers if they come out and actually do something. But they're all waiting for rates to get back in the fives or in the low sixes and eventually we'll be back here once everything's over. And their competition will increase and so will their purchase price. Right. But then that's their herd mentality. They wait until everybody else does it because they don't want to make a mistake.

A mistake only lasts a few years if it was a mistake. It goes away. Right. Yeah. Except for my first two. They were like four and 10 years. But anyway, we move on. You didn't realize you were going to mistake it right away right away. Do you want to hear what Martha Stewart has to say these days? Mm, what? Uh about um How to do your jail cell? You know, the worst part about Martha Stewart is the fact that she went to jail for insider trading which the politicians who do constantly get away with. It's BS. And they're supposed to be free. Yeah. It is total BS. She handled it with grace and dignity and she came back and she's kicking some tail end. Well, it's because you know, it's because you know, now she's got the credit just like Trump had the cred of, you know, being a gangster.

She got street cred with uh Snoop Snoop Snoop. Right. Exactly. Well, she talks She talks about the six renovation decisions you may regret regret when you get a little older in life. Number one, she says prioritizing aesthetics over accessibility because if you can't get around really well, doesn't matter how good it looks. Well, and also it's you should always do your house with what not just what you love, you know, like putting a sports team in the pool that nobody else could then, you know, it's it's like what those mistakes people did like Well, it depends on the sports team. Well, it's just like people who go, "Hey, I need a tramp stamp. " You do? And then 20 years later, you're like, "Oh, that was a mistake.

" That was a dumb thing to do. I'm going to have that laser be removed. Uh choosing a deep soaking tub instead of a walk-in shower. Yeah. You can get You can get that little thing to come over and lower you in and lift you right back out. That's true. That's true. Um make sure it's Or just marry younger. I like that. I like that. Marry younger. Uh designing with tight clearances. So you got a kitchen, you know, there's people that like, "Oh, I got 18 inches in between this window and the countertop. " That's plenty. No, it's not. Yeah. You know, the funny thing was the producer I thought that's what he had said. He said a ramp right in the middle. I couldn't read the first thing. Tramp Well, I I now I know how I came here.

I guess I was wrong. Yeah. You're listening to Real Estate Jerky. I'm Ed Parcaut, MBA veteran and mortgage advisor at Lending for Living alongside RE/MAX Executive Realtor Mike Kelly. If you have questions or comments for us, feel free to reach out by emailing us at radio@realestatejerky. com. If you have questions about probate, go to mikekellyrealtor. com. If you have questions about VA loans, go to loansquad. com. If you have questions about reverse mortgages, go to lendingforliving. com. All your stuff will be answered in those three places. All right, back to you, Mike. Nice. So incorporating excessive level changes, who would do that in the first place? Well, that's like my house on Brady.

You got that drop down in the middle there and I've asked my wife, "Should we raise this up for when you're in a wheelchair? " Right. say like that, but but it's like cuz I remember my grandparents coming here and you know that's that step down that's it's only 5 in but that could be a big thing. Yeah, and she's like no, we'll just wait until we need to and that's fine whatever. I mean that's the thing about I like the sunkenness of that room though cuz when we sit in there we can't you don't see that in our our front windows can be wide open nobody can see in that room where I walk by other people's houses they're all watching TV in the front room you know cuz they have smaller houses and they're seeing them watch TV and everybody else and so anyway move on.

What was your next thing? It it can. It can. Uh I don't know why. So that was a level change. I can see that. Yeah, and that's just like coming into our house we have the steps out front. I could have put a ramp but no. Yeah. Yeah. No, you don't need it yet. No, I'll My knee's not bad. My knees are bad but that's beside the point but I'm not in a wheelchair yet. Well and you know the 1970s homes where they always put the level the level changes in most people lived Well that's like getting a tri-level house or a two-story house. That's why I'm not in one. Now The infamous Kaufman and Broad. Right, but down in Southern California the people I think I talked about last week the uh people I know that are building In Orange County.

three-story homes, $4 million homes all have elevators in them. You can retrofit a house for an elevator now and they're about 30 grand which sounds like a lot but your kitchen's more than that and so is your bathroom. Elevators. Yeah. I'm just saying it's one way to get stay in that house and yeah you got a closet downstairs next thing you know guess what you got a elevator in place. Yeah, longer. She says skipping ambient lighting and strategically placed outlets. So what they want you to do is like skip while you have this lighting? Yeah. Now they want ambient lighting in the home and they want strategically placed outlets. I wish I could put well I'm going to put more outlets on the exterior of my home cuz it was built in the '60s and there's one in the front and one in the back.

Yeah, well we had to you know everything's getting changed at our house constantly. We just put one in in the front you know cuz we have our water softener there. I just have people who go under the house I don't. Yeah. And then she says polished large scale tile floors. Uh not to put those in. Oh yeah that's that's horrible. Don't do it I guess. It's a Whenever I think about improving my property and this I think is the one I'm going to die in I did things that would would be timeless where you don't say you don't walk in go oh they remodeled that in 2004. Oh they put slate in. Yeah, exactly. Hardwood floors, neutral colors and the thicker the better so if you need to you can sand them and restain them.

And that's why I mean in my front our front area by the door is all jarred up because of my wife's last dog because she would freak out and just scrape it you know that kind of stuff. Well they're so thick I can sand that but now I don't really want to because it's Yeah. Exactly. Yeah. a lot of work. Yeah, it is. They've been done once since we've owned this place and they looked amazing at that time. Well you got solid hardwood instead of the engineered hardwood. Right. Well that's because it was put in a long time ago. Yeah. And guess what? It was uh-oh. That's right. That's the end of our show. I want to thank you for being here. We really appreciate you. You can reach out to us with any questions or comments.

You can find us via web, social media or you can shoot us an email at radio@realestatejerky. com. You can give me a call at Parko at 209-404-1915. Reach out to Mike Kelly at 209-968- 5633. Having problems today? If you miss any of the show don't worry you can catch up via podcast wherever you find your favorite podcast at. We're proud to live in this country you can still build personal wealth through home ownership. Join us here on Real Estate Jerky. We'll always give you something to chew on every Saturday at 12:00 noon and Sundays at 3:00 p. m. on Power Talk 1360 KFB. Mike thanks for being on the show today. A pleasure to be here Ed. Thanks for tuning in to Real Estate Jerky. We'll talk to you next week.

Cuz we got small towns and farmland. Folks who still make a living with their hands. Where I come from a man is still a man. That's my California.