Ed Parcaut Explains Why Mortgage Lates Can Crush Buyer Approval

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 Parco, 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 always give you something to chew on. I'm your host, Ed Parco, 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, 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 Re/Max executive realtor. I'm sorry, a real Re/Max executive realtor. No, we can't use it. It's just Re/Max realtor. Really? Even though they're real Re/Max? It's real Re/Max, but I guess they someone in the real Re/Max association, whatever they do, put out this logo and then they somebody else said, hey, we're not using that. We're not changing logos. We're not doing anything. And I guess the other thing is that it used to be agents, you know, it was kind of like the Ponzi scheme with was it Keller Williams where you get an agent to come over. I have no idea if that's a Ponzi scheme, so. Well, it's you know, you get their down downstream or whatever you you get something of theirs.

You get a percentage I guess the brokerage if there's a split will split part of their percentage with you. I have no understanding of it. It just seems like bull crap to me. But they're real who purchased Re/Max for $880 million said the real agents cannot go after the Re/Max agents and if they do whatever those Re/Max agents produce while they're at real will be paid to Re/Max. Okay, I'm confused, but okay. I'm not. So what you're saying is real so there's two so they're acting like they're two separate brokerages. Okay. So there's real and then there's real Re/Max. Right. It's almost Yeah, it's almost like the parent companies of C21, Coldwell Banker, all those. You know, they still act act independently.

Gotcha. Supposedly that's the way it's going to be for a while. I think I think I got you. I don't remember what you said. I glazed over. As soon as I start talking, your eyes glaze over. I was like real real what? Huh? All right, what do we have that's important? You know, it's been nice, you know, I I told you two weeks ago when it was so cool, nice and cool, it was a teaser because we'd always get back to the heat and 90 something is back to the heat and then we get back to cool. So that's kind of how this is going to go for the next 30 days till we get into October and then the question will be do we wear a parka for for Halloween or do we wear shorts for Halloween? It'll probably be shorts.

That's my guess. Well, I'll be in my pajamas because I'll be in the house. Yeah, I'll be manning the door. All right, what do we have today? We have inventory. Yeah, what's the national inventory? Well, was there anything else we need to go over before we get into that that we haven't talked about in a while? Well, there's going to be a change in appraisal stuff, but I haven't Yeah, that we we'll get that later because it basically it's I don't want to really talk about it now and throw it all out there because it's going to change. It's going to change and change just like the whole credit thing where we're going to have different credit reports and all that stuff and then that's changed. I'm just glad that we're able to use FICO on our side or advantage score.

And because sometimes advantage score is so much higher than the FICO score because of the history that's involved with figuring that stuff out. I had a gentleman the other day, a vet, and he had three scores on advantage but no and one score on FICO. Yeah, that's because, you know, I looked at his credit and it's like, okay, there's no way this this is an older guy who had, you know, there's lates on a mortgage. If you have any lates on a mortgage, even though you sold it a year nine months ago, that's going to affect you for a year. It's it talks about history and your intent to repay. Well, no, I'm just saying, but people don't understand a late on a mortgage can't have one in the last 12 months when we're doing anything.

And I know we're jumping right into stuff, but people don't understand that and lates on installment stuff doesn't always matter. It depends on what DU says and LP, but it's going to affect you. One late, a $5 late in 30 days is 80 points on average. And they're like, but it was only $5. It doesn't matter if it's $5 or $1,000. It's the word in front of it, late. Yeah, so don't get those or don't pay off your credit card. I mean, don't cancel your credit cards because that's going to hurt you too. Only $5, why are you late? Put everything on autopay so you don't have to worry about it. Yeah, but then make sure you have money in the account. That helps. That way you could get a late that way. And not having money in the account.

And a return to sender. All right, you're listening to Real Estate Jerky. I'm Ed Parco, MBA veteran and mortgage advisor at Lending for Living alongside Re/Max executive realtor Mike Kelly. All right, one more thing I'm going to say before we get into the numbers, which is I've been doing a lot with AI, I've been building a lot of apps, and I'm looking for some people to do some testing on one of my apps. I'm just going to throw it out there. It's not in the app store yet. You can only get it online at . com. So it's aijerky. com. Yeah, just like the show, Real Estate Jerky. aijerky. com, it's for AI. If you want to know what's happening in AI, it's a news thing. I'll send you updates throughout the day.

I'll send you reports. Just check it out something. If you want it, I have about, I don't know, maybe another 15 what they normally call beta accounts, beta accounts, but I call them alpha accounts. So I only have alpha. So when you log in, you can get it for free or if you want more than that, you can use the code alpha20 and you can get in there and get the creator account. I just need some testers. So please aijerky. com. Correct. And reach out to me if you have issues or anything at all, please, 209-404-1915. And I'm not making a ton of money on that. That's not what this is. I want to know what's going on with AI and I'm sure you do too. All right, inventory. What do you think, up or down?

I want to say we're down. This is nationwide. So we're down 9,695 homes nationwide. That's 873,978. Why are we down? Yeah, why are we down? Are those delisters? No, because these are not even going on. So I just think people because of where rates have gone to, which we'll get into a little bit that people are thinking, okay, this is not a good time to sell, this is not a good time, I don't have to, I got a low interest rate. It's we're so, all right, I might as well get into it. So we're our 10-year the bond bonds right now, we're at the 10-year thing, is that the number of we're at 2007 again. We haven't been this high since 2007. So that means our rates are pretty high because we're, you know, we're probably above 2023 with rates right now.

We're probably almost 7%, above 7% on average. And the only reason we're that low, you know, say that low, is because they're buying the mortgage-backed securities to help offset that. Right. The problem's going to be going forward until this war is over, until oil stops going up. I read articles, they're thinking it's going to go to $150 a barrel. Can you imagine what that's going to do to the market? We're going to have odd and even days at the gas pumps again. Electric vehicles. All right, so that's so we'll get full details of that a little bit later, but right now, so the median list price off of the inventory is 439,000, which is down 900. Days on the market still at 70 days on the market nationwide.

Price cuts are at 42. 08, which is pretty much flat. So that means out of every 100 homes, 42 of them have a price reduction. Wow. So that's kind of where we are with the nationwide inventory. And I see that it's all because of where rates are again. Because if we go back to March and April of this year, rates are great and we had the highest closings that we had in a long time. If you look at what you'll get into, you know, down the road about our close stuff that where numbers are not amazing. They're low compared to where we should be or should have been in the last couple months. You done looking at some? Well, I wanted to see if I can get the average days on the market for the state of California based on our active inventory right now, but it's oh, it answered.

Yay. Do you want to know? Sure. Do we have time? Of course. Oh, this is this is your time. I'll go in the state. We didn't go deep into a lot of deep conversation. We didn't have deep thoughts like Jack Handy. Maybe later. So Redfin data shows 106,530 homes on sale or for sale in the state of California and realtor. com says 1563. Now the difference between that is just single-family homes with Redfin and then all homes in realtor. com. That gives us a I was interested to see what properties are staying on the market for in the state. It says on average between 42 and 53 Ds in the market. Ds? Ds. Well, I can't talk. You know, you can't talk most of the times. Oh, you know what? You get your real estate and mortgage questions answered by the experts at Real Estate Jerky.

Contact us at radio@realestatejerky. com. You can call me, Ed Parco, directly at 209-404-1915. Reach out to Mike Kelly at 209-968-5633. And he was right in the middle of a conversation and I thought I'd cut him off so that you would stay around when you're going, what was he going to say? Well, we wanted to build some tension, some anxiety, some some fervor. So we were talking about 42 to 53 days on the market on average for homes listed in the state of California. And our average or our median list price for those homes range between 730 and 745. I remember earlier in the year they were projecting that our median sales price in the state of California was going to be 950. Looks like the market's decreasing a little bit.

It's not a crash, it's not a bubble, this thing isn't blown up. You don't have inventory, you lose what, 9,000 homes inventory nationwide. Yeah, we're not 250 going up each week anymore. And we have 156,000 homes on the market for the whole state of California. No bubble there. Just no bubble. And then wait, let me bring this to you. Woohoo, this is good. So we moved to the county of Stanislaus. We have No, I'm still here. I never moved. But we just did from California, all of California to just one little county, which is a county that most of us are in. Yeah, which is a pretty big county. I think you should also do San Joaquin because we also come across over there next time. I wish I could split these two reports up, but this program no let me.

868 homes on the market. Now how many realtors are there in Stanislaus County? About 2,500. How many are working? I mean working, 10? 17. 357 pending sales through the beginning of September to today and 127 closed transactions. Woohoo, we are cooking with fire. Maybe the gas. I don't know that we can afford the wood. Anyway, that's the facts Jack in the county of Stanislaus. So low inventory still, still high demand. Some people sitting on the fence waiting for the war to be done, seeing if interest rates are going to come down, and others who really need to buy are out there buying. So there is some activity. All right. You heard it here first. That's right. I was I remember hearing earlier in the week about weapons in space because they let it out that they finally said that we had weapons.

The big this I think it was on Monday the US said that for the first time that Space Force has deployed weapons in orbit. Did you hear this? Yes. You heard all this? No, not all of it. Air Force Secretary Frank Minke told the Air and Space Cyber Conference that the US has on-orbit space control weapons framed as part of a broader modernization push against China, Russia, AI, and autonomous weapons. Oh. Yeah, but you know, there's a space treaty, and I only know about the space treaty because I watched the movie about uh with Ronald Reagan. Yeah, about It's the 1967 Outer Space Treaty bans nuclear weapons or weapons of mass destructions in orbit. Would that include like laser beams? Ronald Reagan.

They're not nuclear, so probably no. Um that that's a loophole. That's where the wealthy get their attorneys to look at the contract and then find a loophole. Well, I mean, they they have this issue going on, then they're doing data centers on the moon because people don't want them in their backyard because they got all this information from all the wrong bots out there that are telling everybody. I think we talked about before there was like two like uh on X they shut down 200,000 bots, and I think uh 30% of them were putting out fake information about that kind of stuff. Yeah. Were they left leaning? Is that what you were saying, or is it just false information? Just false information about um how bad data centers are and how much water they use and how much electricity they use and all that negative stuff so that people get up in up in arms.

Exactly. So it's China, it's probably China, Russia, all those people who are doing it to mess with us, and we have free speech. Well, with the free speech, you have to like look at it and see if it's true before you freak out. And the problem is people don't look into it. They just take the headline and run with it and put it on a sign. Oh, no, they don't even put it on a sign. They get a sign handed to them. They're preprinted. They've been ready to go for weeks. That's right. And you can make $100,000 a year by doing it. Yeah. So I don't want to hear about jobs out there when you got those jobs. Yeah. Yeah. I wonder if they report that. Of course they report that information. That's that's No, I mean, what they got paid.

I'm sure they got they sure they get W-2s. From George Soros? No, it's through the company whoever hired them. Oh, an NGO. Yeah, something like that. Okay. I got you. So uh since we've been talking about different things all over the place and we have no consistently talking about things besides real estate and what's going on, I want to talk about that Bay Area property. Oh, do it. Yeah, they're extremely rare. Um I was never So when I was a kid, I raised every animal, including ducks. I raised a ton of ducks. Yeah. So you didn't want to shoot them? No, and everybody's like, "Hey, you want to come to the duck club? " And I was never into that because Yeah, can I catch them? Can I take them home?

No, we're going to shoot them. But it's it's a lot of work. You know, we got to get all the feathers out. You got to do all the different things. It's a great social club. Yeah, so a lot of people I know duck hunt, and I guess there is an island for sale in the Bay, the Concord Concord Farms Duck Club just hit the market. 400 acres of open space. Is it 400? 400 acres, that's what I have. Or do you have something different? No, I don't. 400 acres, yes, that's what it says. What did you think it was 4,000 acres or something? It's 400 acres in the crops in the field. Oh, you're trying to make a song or something? Yeah. Oh, I You know me. We got a private chat here. Let's see what that's saying. Can Mike Love come up a bit?

Yes, he can. I've been trying to talk into the microphone. All right, that was that's about 15 minutes ago. Sorry, you have to deal with that. All right. Yeah, but you didn't you didn't do anything about it. You didn't like get my attention. All right, back to the duck club. You got to be all over the place. So this is 400 acres of open space on Van Sickle Island in Suisun Is that Suisun? No, I already did. I can't. Solano, it says. Is that Solano? Yeah, it says it. Solano County. Oh, Suisun Bay. Suisun Bay. I know Solano County. I can read that word. Oh, I was thinking So supposedly this is an extremely rare property and uh it's undeveloped island in the Deltas. Um it is a duck club. It's historic, private, the kind of property that trades once in a generation.

Someone's going to buy it and go, "No more duck hunt. " You know someone's going to do that. Yeah, and they're going to put uh individual They'll probably put low-income housing in there. Wait, IKT? IKT. I know that. Oh, is that what that is? Yeah. Oh. It's only about one Oh, it's only 1. 5 million? I didn't have the price on that. That's it? That's cheap. 400 acres? That's super cheap. You know how many homes you can build on that? Well, I'm sure it doesn't have any services out there, maybe electricity and water. Um because I bet you it has to have some services out there. It's got one big big meeting place, so. And there has to have some You can probably drill get your own well, service it that way.

You can probably You know, I'm sure there's stuff out there. Yeah. You could sell one-acre lots and put mansions on there, and you can hunt from your backyard. You're listening to Real Estate Jerky. I'm Ed Parco, MBA veteran, mortgage advisor at Lending for Living alongside REMAX Executive Realtor Mike Kelly. Uh I don't know. Uh I'm sure a bunch of people are going to try to get together and buy it and keep it a duck club, but I'm sure someone's going to come in and say And there has to be a reason they're selling it, you know, that people are either tired or it's not working like it used to. Members could be dwindling. That that too. And operating expenses are remain the same. Yeah, cuz and they use a diesel generator out there.

Okay, that was a joke. That was a joke. Yeah, so what are you going to do? I don't know. But it's interesting that it is for sale and that it's been been that for hundreds of years. Well, that stuff comes up. I mean, people Things change, and the area's changing. Someone could make some nice, you know, put some luxury homes on it and have a gated community out there. They don't really need gates. Maybe gate on the road to get in there, but Right. um but it would be a unique situation for some people to buy. You know, if you want 400 acres and nobody else around you, then Yeah, it'd be a great site for a bunch of manufacturing. And for 1. 5 million, that's pretty cheap compared to the You get not even a house anymore in the Bay for that.

Yeah. I wonder if a dot-commer will buy it. No, I bet you a Nvidia guy will come in and just pick it up. Buy the whole thing and just have it be his own private duck club. Or her. Maybe his own You're assuming it's a male that would buy that. Or her own private Idaho. You didn't say that. You said that after. Or their. What if I say that? They, them. Okay, now you're just getting crazy. Yeah, I'm I'm just, you know, on the edge. I'm cutting edge. You know, I I haven't thought about this because all my kids are past the college age, but how expensive the cost of $400,000? What's $400,000? That's what they're saying that some of these uh dorm rooms that they're trying to buy or build uh are running as high as $400,000 per bed to to build.

To build? I can see Oh, well, that's cheaper than what they did for that motel in Modesto. What was that, a million dollars? 600,000 plus for each room when they remodeled it for that But that was free money. Yeah. Free money. Well, they're saying a couple places are the expense was about $260,000, $251,000 per bed for one of their completed projects. Um it's hard to read these things when I keep getting these pop-ups. They want me to subscribe to their newspaper. Um so we initially just committed $2 billion in grants for student housing, but it changed the state's funding structure. It just increased the project's debt service. Of course it did. Well, it's just so costly to build right now. That's I mean, we we talked about the National Association of Homebuilders this week, and let me pull that up real quick about how those numbers were, and I I don't think people understand.

Uh the National Association of Homebuilders released their index this week, and it decreased by three points from last month figure of 35 to 32 in September. Current sales decreased four points to 35. Sales expectations decreased by six points to 37, and buyer traffic was unchanged at 23. That is extremely horrible numbers for builders to be able to do anything. I mean, people don't understand. They want a what? 50 is a decent is okay. 50 or more. They want above that to really build, and they're not seeing that, and that's a problem for people looking to buy and everything else. Exactly. I agree. This is Real Estate Jerky on PowerTalk 1360 KFIV, and I'm Mike Kelly, REMAX Executive Realtor here in the Central Valley right alongside that guy Ed Parco, MBA veteran, mortgage expert, AI Jerky president, president of Lending for Living, and we were discussing the extreme costs of building dormitories uh for college students trying to increase housing for all those kids that want to go to a four-year college.

Yes, we did, but then we jumped into the National Association of Homebuilders Index and how those that number just keeps going down. Like a year a couple years ago, we were in the 50 or 52, and then they started going down, and now current numbers right now are 32. What does that mean? That means they build homes only to keep their people employed. Yeah, it's most likely they're building the ones that are purchased, haven't closed escrow because you can't yet, but these are purchase contracts on the books. They're going to build those. They're not going to build and have standing inventory where you can drive into a subdivision and go, "Oh, I like that lot. I like that that elevation. Let's do that one.

" Yeah, but they're going to have that, but it's just going to be a lot. Yeah, it'd be exactly. And that's what We need Somebody said yesterday that there were 5 million nationwide homes. That was what the number they put out there. The number's been all over. Um we haven't We're shy, and that We haven't been building. Well, everybody's like, "We've seen building. " They even Remember they even say, "We're building all over. We don't need it not in our backyard. " That's where we're shy. We're not building We're not building thousands of homes a year like we're supposed to in Modesto. You know, there's If you drive the What is it? The five um through Patterson, you see a lot of building going on, and if you drive that a lot, you're thinking, "Oh my god, they're putting up houses like like uh The 585 kind of thing.

Yeah, 585, yeah. Um All the way to the 132? Oh. Yeah, those numbers. You know, in in Colorado they don't they don't They name their freeways. They don't call it 99 or, you know, the 70. Anyway, it's kind of interesting how we do it here in California. I mean, I already heard of 70. Uh it's in Denver. I thought they don't name it. No, I call it 70 cuz I'm from California. And then they must name it. They must have an interstate number. If it's an interstate, they have a number on it. Yeah. It's 70. So anyway, um you would think that lots of homes are being built. That's just one of the very few places they are building. They're building in Modesto now, but they're building a total of 527 homes um for that DR Horton subdivision going in and then another couple hundred.

So So you're Yeah, you're lying. Yeah, but I think they're almost finished. They're finished with the last one, and then they have the other one they're working on. Yeah, so they're We used to build a thousand a year. I know. Just Modesto. Just Modesto. And DR Horton's not Modesto. That's Riverbank, right? Well, you got It's kind of a No, that actually is Modesto. It is Modesto gets the uh property tax, Modesto gets the sales tax, Modesto gets Oh. And here's how bad it is out there because Mortgage Banker Association puts out their report this week for last week, and the week ending 9/12 showed that overall application volume decreased by 4%. Applications to purchase a home were down 1% for the week and down 19% year over year, and refinances decreased by another 9%.

And the previous week and they were down 65% lower than a year ago. Whoa. I didn't remember saying that earlier in the week. I thought I said less than that, but at 65% That's a huge number. That means it is pretty bleak out there. I mean, cuz when we have rates where we have them right now and it's all based off of the oil, and everybody's like, "How can that be? How can We, you know, when the Fed comes out the the low, you know, lower or raise or raise the short-term interest rates, the problem is it's not going to help whatever they do right now because it's oil. They don't control oil. If they allow the Hootzies to keep blowing up pipelines and other stuff, then we're going to have a problem for a while.

Yep. Yeah. How long did it take them to repair the first time the Hooties blew up uh The Hooties, also like I got to follow it up with the and the blowfish. The Hootie and the Blowfish. There was a wasn't there a Hooties kind of group? I sure back in your day. Yeah, Hootie and the Blowfish. No, that's that's not Hooties. I know. It's a play on words. It's not even close to a play on words. It's so totally played on the word. It's not even close. Completely. 17 people understand what I just said. Yeah. Okay, so um That's because you explained it to them. No, I didn't. I just finished it. So let's go back to the the dormitory expense. It costs a lot of money to ignore. But it's crazy. But so just look at in 2024, they built 1,423 beds in UC San Diego at a cost of 260 per bed, $260,000 per bed.

And at California State University Northridge in 2025, 200 beds at the cost of $360,000. Now at Lake Tahoe, and I know you said, well, it's Lake Tahoe. Lake Tahoe, yeah, that's like one we built in Berkeley. A 100-bed dormitory stretched to $400,000 per bed. Long story short? It's expensive. Well, the problem is just cut down your amount of kids going to school. Don't let that many kids come into your school. They can go somewhere else. Trade schools. No, what I mean by that is there are so many people who come from out of state to those schools, right? And that's where they make higher price of their numbers. Well, just make them in-state schools. And then don't increase because now you got dormitory costs even higher, tuition costs even higher to offset all those things.

And that's what we don't need. We don't need higher costs. It's already too expensive for a degree right now. It really is. And the real question is, do you really need it? Uh I would tell someone go do trades. They're going to they'll do much better in trades than going to college and figuring something out and then coming out and going, okay, well, I created this. I was in art school and creative this and now I have ChatGPT who creates stuff that's amazing and and kind of stuff. Well, I was reading an article yesterday where most managers working at an In-N-Out, okay, managing an In-N-Out are making up to $200,000 a year. Mhm. It's a lot of money to be managing a burger store. Well, that burger store is making a lot of money.

They are making a lot of money. That's the only burger store you know they have a line constantly on lunch and at dinner and before that and after that. The whole whole time they're open. You're listening to Real Estate Jerky. I'm Ed Parco, NBA veteran and mortgage advisor at Lending for Living alongside Remax executive realtor Mike Kelly. And it's not their burger, it's not their fries, it's the sauce that everybody likes. Cuz it's not the I mean, it's good. I like it. It's my, you know, go-to if I'm going to have one. But even if you go to the other one that has uh five guys, that's they're expensive. I mean, Yeah, and you know we have Snow White back um on McHenry in the old Taco Bell building that became the commissary for um Yogurt Mill and it's now Snow White.

Where? On McHenry right by oh, right by Carl's Jr. That's not helping me. On McHenry? Yeah. The Rumble on McHenry. Okay, that's better. How about that? Okay. Right diagonal from Farmers and Merchants Bank. Okay, that's even better. Now I know exactly where it is. Right across the street from uh Mike, not Michael's. What's the other store? The religious one. Um Hobby Lobby. Yeah. Why don't you just tell me it's next to the other Cuz it's not that far down. It's next to the Carl's Jr. Well, it's by the tattoo shop. There. Yeah, then that's not there either. Um anyway, I haven't been in there yet. I'd like to go in there. You know, one of our our long time, our founding members of our Modesto Sunrise Rotary, uh Nick Paleos, he's a big Snow White fan and I I told him we need to get together for lunch so we can go in and see how expensive those burgers are and if they taste like they used to.

Did they taste good? Oh god, they were some of the best burgers in town. Yeah, it's that's a high bar to set. Well, an old buddy of mine, Jim Tai and his family owned the Snow White in Riverbank and the Snow White in the two Snow Whites in Modesto and it was always very good food. But it was just a burger. Right. You know. Well, as a kid, we couldn't afford that. We had to go for the 29 cents and 39 cents. Yep. One day, I remember what was it, 35 cent cheeseburgers at McDonald's? I ate 10 of them. Yeah, but I was there and also Burger King at the time. How was the girl and boy? Oh, yeah, that was later in life though for me. Yeah. All right. Oh, we had retail sales out this week. I'm still stuck on the whole Mortgage Banker Association, but you know, when you have rates a little over 7%, again, that slows people down.

Does it? For purchasing. Yeah, it does. It makes people ponder. And you know, you had people that were when we were at 6 and 8 to 6 and 1/2, they were still sitting on the fence. Everybody sits on the fence whenever it's a rate. They have no idea. Yeah. And if you're going to here's the thing that's different between real estate and mortgage. You get them into contract, they don't shop you. On average, I don't have people shopping me because I tell them do it ahead of time, see what you're, you know, go ahead and do it. Well, I had one recently. It's like, you know, she didn't understand the cost. It had nothing to do with what I did. It's I finally explained it to her even more. She's like, I'm going to go ahead, but you shouldn't have done this when you have a 21-day close and we're 10 days into it.

And now I'm and now I'm sitting idle while you shop. And I get go ahead because I locked you two weeks ago and now the rates are so much worse today, but that I'm just saying, but you want to make sure you know who you're going through with your mortgage before you get into contract. Don't use the person that you're that has a good reputation, that everybody knows will close on time and this and that to get into contract and then go with one of these other things. Right. Yeah, that are online and and will not perform on time or perform period. I mean, so please check everything out ahead of time. That's all I wanted to say. Is that Is that every bit of what you want to say? Yeah, that's it. Okay.

I'm done for the day. Finish it up. I'll be back. I'm out of here. And I know. No, I don't want to go. Yeah, so I I still don't understand what we're going to do with builder with this builder confidence and you know, so with the builders and everything else. So I mean, I know I brought we already talked about it, but it's just shocking how bad it is. It really is. Are are we ready to go? No. Okay. What do you want to talk about? That's not my job. I just sit here and look pretty. Well, I think we should talk about the the smartest cities in California. Well, I don't know if we have that much time, but we I want to recap existing home sales that came out. There's 3. 98 million annualized. That's down 2%.

Um that's the first time we've been under 4 million since June of 2025 and you're going, what does that mean? Inventory. We need we have just to keep up with the average amount of people who come into California and grow, we need to have so many properties come on the market. Well, nationwide, it's the same way. And that only having 4 million is not enough to to take care of that. And that's the problem is we have less come on the market because of actual interest rates that they have and everything else. Yeah, that's the fact, Jack. Real Estate Jerky on Power Talk 1360 KFIV is always bringing you the latest information on the real estate industry. And if you have any question or comments about our discussion today, feel free to email us at radio@realestatejerky.

com. First section, we went through inventory and nationwide how it's down, how the average days on the market still at 72, and the fact that out of out of 100 transactions, 42 are reducing their price. And then I don't know if you said that on air, but you were telling us about your you had your meeting and it was 50% of Sales meeting on Tuesday. 50% for Stanislaus County of reductions. Yeah. And so I I can see that. I mean, so you know, again, it's a price point. Eventually, this is not going to matter. What are you going to say? What do you mean? We talked about that before. The all the AI money, Nvidia, SpaceX, all that stuff that's going to come, it's going to increase the values in Bay Area.

That's going to push it more this way like it always does. And you're going to start seeing all of a sudden a a bunch of people purchasing all over the place. And the problem is we don't have enough inventory. Why? And they're not building enough. Cuz we're not building enough. And we don't even on the market cuz people aren't putting their house on the market to sell unless they're going to move somewhere or the, you know, what's the three Ds? Divorce, death, or dysfunction. Deaths. Deployment. This I like the dysfunction. I try to put the fun back into the dysfunction, but um the yeah, the life events is not enough to happen to increase inventory. No, because if you have an additional kid, baby, and you have only two bedrooms or three bedrooms, you're not going to go to a four-bedroom house.

You're going to put two of them together for right now because of the cost. And that's what you run into. But then eventually, you know, it might get more. You just never know. Right. You never know. Uh so the black bears that are going into the the pool that is Martinez. So they're So they yeah, well, it's there is a house in LA where the neighbors are bears. So that means they back up to some wild some wooded area. Yeah, John Muir National Historic site. Yeah, well, what do you expect? That'd be like me in in uh my cabin and going, I cannot believe we have deer and bear in our backyard. Yeah, uh what you know, that was their that was their territory first. It still is. It still is. So they bought a home in Los Angeles foothills, there it tells you, discovered local black bears treat their swimming pool as a community cooling station.

All right, so that's that sounds great. But then you have more of this where it's a BBC article and what is BBC? That would be British. What are they talking about? Global warming. This is actually about urban wildlife adapting to heat as summers get hotter in Southern California. Bears are coming down out of the San Gabriel Mountains and finding backyard pools as the best water source around. Well, it could also be the fact that they took a lot of the water somewhere else. Exactly. And they don't have any money in the money, any water in the reservoirs. Yeah, we humans have um altered their environment. That's correct. So uh the options are basically fence it, drain it, or share it. Uh most are sharing it.

The question is if you're in it, do they come? And then do they do their business in it while you're in it? Well, that's just that's a chlorine answer. Yeah, I remember uh our other place, uh you find ducks and it's like you don't want ducks in your pool. Oh, we had I have friends in Riverbank that wound up with ducks in the pool and You don't want it's horrible for your pool. But they kind of allowed it to happen because the mom laid eggs in one of their their plants and she was taking care of the kids and oh my, they had to drain the pool, scrub the pool, acid wash the pool, and then refill the pool. Um so they don't they no longer have ducks coming. The family did not come back. All right, so the so the question you have to worry about, so if you have bears and other thing in your pool, it could be an insurance issue.

Mhm. You need to see if your homeowner policy covers wildlife damage. Yeah. A lot of them don't. Attacks. Well, yeah, well, that's like dogs. You know, you got to make sure that you have that on. That's why they say don't put a sign up about a dog in your yard. Be careful because the dog will increase your claims. Uh bear in the pool is a covered claim by the way. Oh. Is it really? My question will be is it only if it's dead or if it's alive is it a claim? So if it damages the pool, it could be a claim. So if it's so Or structure around it to get to the pool. So Winnie the Pooh Yeah. is in the pool? Oh, bother. Oh, where's my honey? Where's my honey pot? That's a totally different thing. It's all about spies.

Honey pot. Honey pot. Yeah. Yeah. Now, have you watched that show on uh it's uh another one of Taylor Sheridan show about Lioness. Yeah, have you watched this this season this year? The Lioness? Yeah. I'm up to date. Yeah, that's a little different. It is. And it's it's the back and forth that you know, you really got to pay attention. You can't you can't do other things while you're watching it. But that's all about the, you know, it's all about honey potting and how they and uh what's funny is it's probably based off of true stories about people who are, you know, been taken advantage of by different people and they they are owned by other countries and things like that. We've had that before.

You're listening to Real Estate Jerky. I'm Ed Parco, NBA veteran and mortgage advisor at Lending for Living alongside Remax executive realtor Mike Kelly. If you have if you have questions, there's a word I was looking for, or comments for us, feel free to reach out us by emailing us at Yeah. realestatejerky. com. You can reach out to me at 209-404-1915. You can reach out to Mike Kelly at 209-968-5633. You think I'd know that by now. You think. I don't know yours. Yeah, well. Because you don't say it constantly. Yeah, but I hear it. Yeah. Call me now. Call me now. All right, so I mean that's again we're talking about bears in the pool. I don't know, just be careful. Don't let don't let ducks even swim in it.

Get them out because they before they lay their eggs, get them out. We and that we had the other house, we had the same problem. They laid eggs and it it messes up the pool. Mhm. And and you know Just like your dogs in the pool can I remember at the other house we had a dog who constantly get on a lab and the guy was like it with the amount of chlorine they had to use because that dog would never get out of the pool. Oh. Love the water. Yeah, labs are like that. December, January, it would jump in the pool after it did its business and kids go dry the dog. Oh, I don't want to dry it. Can we get rid of the dog? Oh, that's sad. I'm just kidding. That's just what I was thinking. Yeah, uh this guy get rid of this dumb dog.

Well, we made we made the dumb decision of putting gorilla hair ground cover in the backyard with to I have no idea what that is. miniature it's shredded bark basically and chunks of wood and you know while it looks pretty for a few minutes then the dogs go through it and what do they bring into the house? All the gorilla hair that's stuck to their fur. It's just a mess. I will never make that decision again. That's why I went with rock. Yeah, you know I had so much rock at this house when I bought it. I never want to see rock again. Um We had rock at this house, but it was a different rock. Well, this this river tumbled river rock is attractive and when if you remove it, it's going to be gone.

You're not going to go 6 in, 8 in, 10 in underground still pulling out rock. So our pre our owner that owned before the way she cleaned up the yard is she just added more rock. Yeah, I like that. There was it's like an Arizona rock that we got in ours. Yeah, it's it was either that or a Mexico one and the Mexico one was $8,000 more expensive for the same amount. Yeah, I don't think I need that Mexico stuff. Yeah, it's good looking. Oh my god. It did not actually come from Mexico then, did it? It actually did come from Mexico. That's why it was so expensive. Why was it so much more? Uh because it came from Mexico. Gas, diesel. Yeah, they had to use uh vehicles. Yeah. Yeah. Had to use mules. Oh, that would be Actual mules.

Yeah, that would be interesting. Not the drug runners? Yeah, exactly. Okay, gotcha. You weren't going that direction, but I'm sure a few people listening have gone that direction. So we were talking about the you know everybody's talking about how hard it how bad it is out there and I see how good the economy is. I see how good the job market really is and how AI has not gotten rid of jobs here, but it's gotten rid of jobs in other countries and you're saying what? Cuz we all use in my what I do and everything a virtual assistants all over the world. So you're saying like India, places like that? India and different places like that that have a there was a ton of people using virtual assistants and they were doing all your cut up of thumbnails and all the different stuff through these different companies.

Now there was 40,000 almost 40 or 50,000 of them laid off um who don't have those jobs anymore because AI can do so much of this stuff. So just but it's what I'm getting at I was looking at there's 401Ks at a record 1 155,800 which is unusual for 401Ks in the time. Well, we've seen the increase in the stock market. We've seen an increase in a lot of stuff and if you're not in it, you don't get the benefit of it. And that's the same thing about owning a home. If you're not owning a home, you don't get the benefit of increase in value that happens from it. And guess what? That's a wrap for today. Right. You don't get Wow. Thanks for being here. We really appreciate you. If you have any questions or comments for us, you can visit our web, social media or shoot us an email at radio@realestatejerky.

com. Give me a call at 209-404-1915. Reach out to Mike Kelly at 209-968-5633. If you missed any of the show, don't worry, you can catch up via podcast or find your favorite podcast app. Proud to live in this country and 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 noon, Sundays at 3:00 p. m. on Power Talk 1360 KFIV. Mike, thanks for being on the show. A pleasure, Ed, every week. Thanks for tuning in to Real Estate Jerky. We'll talk to you next week. Bye. 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.