Homeownership Rates Show Why Younger Buyers Need a Plan

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, where we 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 and 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. You ready to get going, Mike? Yeah, I think I think I am. Well, good. It's about time. I'm pretty sure I am. Yeah, okay. All right, Popeye. Popeye. You know I am, I am. Yeah, I am, I am. Yeah. All right, so let's start with uh what's going on with you? Anything new? No, I don't want anything new these days. I just want to be able to get through this month of July. Uh Well, we'll get to the numbers in a second. Yeah, I know. Um Yeah, you know, we're camping with the puppies last weekend. It was fun. Did you? Yeah, sound like you had a lot of time fun taking foxtails out of them. That's like a sitting by a fireplace kind of thing, you know, kind of fire.

No. Oh my, two and a half hours of picking those stupid things out of their fur, their fur, their hair, or whatever you call it, you know, their miniature schnauzers. And uh that dog park was not friendly to dogs. Well, not your little ones rubbing against the ground. Yeah. Exactly. The other ones with with probably paws and taller legs. Yeah. Short hair short hair dogs are probably just fine. Yeah, well, any of those places should go through there and clean all that stuff up. All right, let's get what else is going on? I want to talk about anything right now. No, let's just get into the market. Let's just do it. All right, inventory nationwide is up 15,348 to 859,359 nationwide. What does that mean?

It's second third week of July. That's what that means. And cuz during the first two, you know, the way the 4th of July landed and then the next week most people took off to finish a vacation, whatever. Then they come back and now we're this is what's happening. If you look at the median days on the market for nationwide, we were at 52 a month ago and now we're at 63 days. Oh my. So and then uh median list price is still sitting at 449,900. But price reductions is way is up to 40%, 40. 22%. So every one out of so what's that? 40 out of 100 have a price reduction? That's a lot. Right. Yeah, and that's a lot. Um and Cuz when we started the year we were at 32 and I was like, wow, we're moving up or 33, something like that.

Yeah. So that tells me people are being very hopeful. Hey, let's throw it on the market and see what we get. Oh, we didn't get that. Let's reduce it. But remember, this is nationwide. And you look locally, I don't think we're 40. What are we at? We're probably 20. I know. No, we're at we were at 27 for the state. Uh and that was down I'd like to know what we are in Stanislaus County so maybe someday. Well, yesterday was our sales meeting. Uh we were uh 42 days on the market on average, on average. So um some are taking longer and some are not. Well, it also could depends on how they set them up. Everybody, 30 days, 30 days. Yeah. 45 days. Why do 21 days? Let's close this thing. You know, if it's a vacant property, let's close and get somebody in it before someone rips it apart.

Yeah. Most most offers I receive on on my listings are 21 days or less. Uh and then they take 30 days to do it. My if I if you wrote a 21 days or less, we're getting done in 15 days. Yeah. Cuz why not? Exactly. Why why would you just wait around after everything's done? Why? Yeah. I It's one of those things is we want to get it done fast and very properly done properly, or whatever I was trying to say, but done right and fast. Yeah. Yeah. Yeah, don't skip anything. Don't skip any of the things that you need to do. You do all the right things. But there's not much to do these. You guys do the inspections. What are you doing? Just waiting around just to get more inspections? No, usually not. Usually not.

Usually inspections are done within the first seven days, uh if not sooner. And then uh you pretty much have everything hammered out in the next two days. So what are that what's the normal turn times on those things? So inspections have to be done within 10 days and 17 days for appraisal or Well, yeah, it depends on what you write in. The the default in the contract is 17 days for inspections and appraisal and um 21 days for um loan approval. But we Approval? Yeah, approval. No, I know. But not every lender has their client approved, you know, going in. They're pre-qualified. That's that that's not worth the paper it's written on. That is because okay, let's explain that real quick uh what the difference is between those and before we forget.

You're listening to Real Estate Jerky. I'm Ed Parcaut, MBA veteran and mortgage advisor at Lending for Living, along with Remax executive realtor Mike Kelly. All right, so here's the difference. A pre-qualification means you call me up and you say, I make this amount of money, Not really. Yeah, let's do that. I run your credit and I say, yes, you're qualified. How much do you have for a down payment? Oh, that's what you have? Okay. And that's all it is. So there's no verification at all of what you you just go off of the word. So pre-qualification is worthless. I I will not do those because I might do it real quick to write the offer, but I'm like, okay, give me the documents for your income, give me the documents for your down bank statements, all this stuff.

And then besides running just a credit, I'm going to put all that information in and run AUS, which is the automated system by Fannie Mae, Freddie Mac, to approve it. And then what that system says, if you provide us this document, this document, and this document, this loan will close. How hard is it to do that? That's a so that so So So then you provide those documents. Well, you already have them. Yeah. Those are the things I got originally. So the difference of pre-qualification, you just talking. Doesn't mean anything. You kind of you're kind of making agreements to do something, but it's not real. Pre-approval means you gave me the documents, I verify your numbers. Fully underwritten pre-approval means I send you through the automated engines and I put you in there, I pick, you know, all that kind of stuff.

And I do that on every one of my files because I do not want somebody to fall out of escrow because we didn't do our job or do we only partially do. Well, the only pre-qualification. Yeah. Well, like the the one I just had that fell out um earlier this this week um fell out because of medical expenses. Well, you medical reasons. Medical reasons. You had the they're probably expenses, but you had those expenses up front. You just didn't tell the lender, right? No, I think what happened is they decided they didn't want to do it and they said, oh, we'll just say medical reasons. Yeah, yeah. My dad died. Yeah, just whatever. They didn't say any reason. They just said 1978 medical reasons. It doesn't matter.

You have so many days to cancel anyway. They got the they got the transfer disclosure statement yesterday. They could have just canceled because of that if they want to cancel. They didn't need to make up an excuse. Had they put their money in escrow yet? I don't even think they got the deposit yet. I know they I know they talked about it. You have three business days from the moment you get into contract to get your deposit in escrow. And so I continue to ask after those three business days and, you know, sometimes you have to if you haven't worked with an agent before, you have to send in the notice to perform. And then they get You should not have to on a deposit into escrow. I know, but sometimes you do and then they get a couple more days.

It's it's ridiculous. And some agents are they play the game. Um some agents are really good. This guy was normally really good, but I think he's, you know, can only do what his buyer allows him to do. Or tell you what your buyer. And that's what a lot of people understand. Like I clients tell me things I cannot tell anybody else. I have a fiduciary responsibility. That's why a lot of the business owners and a lot of people come to me because I talk to nobody about you at all. My wife doesn't even know because she's Kaiser HIPAA, so she's used to not telling me anything anyway. Right. Right. So we don't talk much. Do you say good morning? Yeah, that's about it. Okay. Yeah. And goodbye. Have a great day.

Go put in your auto drive. Yeah, there you go. Has she has she ever taken a nap on the way to work? Can't do that. That's that's be wrong. Yeah. Um and so that's where were we at with this? Um so pre-approval and yeah, because I had and here's the problem. There's so many people in my industry and your industry that shouldn't be in our industry. I was talking to a rep of mine at UWM and he's like, oh my god, I had this person call me and says, um I have a married couple. Should I do a joint credit report? No, leave leave one of them off. Yeah, no, do two individual reports. It's like what that's a problem. Don't you need to make sure who you work with, you get referred to them by somebody who's worked with them before.

Yeah. Exactly. And I deal with agent I deal with loan people who come to me because they don't want to run their stuff through their company they work for because they don't want your company to know certain things. And and that's okay. I'm here to help everybody. Right. But my main focus is veterans, reverse mortgages, and business owners. Um anybody else senior still can come to me. I just don't market to you because that's just what I focus on. And someone's like, well, don't do you do the other stuff? I'm like, yeah, it comes to me anyway, but it's not who I focus on to to help people. That's how you're promoting yourself to. Correct. Yeah. That's what I was trying to say. I guess I didn't come out right.

Well, it came out right. I just shortened it. Get your real estate and mortgage questions answered by the experts here at Real Estate Jerky. Contact us at radio@realestatejerky. com. You can call me at Parcaut at 209-404-1915. You can reach out to Mike Kelly at 209-968-5633. And we were talking about national numbers, then we talked about pre-approval of underwritten versus pre-qualification. Yeah, pre-qualification, pre-approval, and fully underwritten pre-approval, which you should be done. What's nice about that is you're already in the game. You can disclose right away, you can get the stuff out. And that's how I can do a VA loan in eight days is the way I do stuff. And people go, well, you can't do it.

Okay, whatever. Part of that eight days is they got to wait. Well, the thing I order the I order the appraisals the moment they sign the disclosures. I send the as soon as I so what we have to do is as lenders, we have to go to escrow, give us your fees. And then they like some will give it to you in a couple hours, some will give it to you in two days. It's like why are you taking so long? Oh, we're really busy. They had that one other file they had to work on. Yeah, whatever. It's you got your standard fees, you punch in a number, they pop up, you can send them over to me. Uh but I asked for everything that I need from escrow the moment I ask for fees, which is a little different than most people.

They they ask for just fees and they go back to escrow to get the rest of stuff. Anyway, so I do that, do the fees, disclose, and order the appraisal right then, same day. Smart. Yeah. So you did disclose national numbers and what what did you say about We were 859,359 up 15,348. So that's about 200 for every state out there. Oh, it'd be nice if they divvied it up like that. They don't. No. Oh, so what's our what's our you want to get into our California numbers? Well, state of California. California says according to Redfin, you know, and Redfin just looks at single family homes. They're looking at 108,753 homes for sale. That's down. We were 110 last week. We were 110 last week, um down 5. 6 year over year.

Uh and the number of newly listed was 29,494 and that's down 4. 4% year over year. And then you've got realtor. com, which looks at everything, and they say we have 158,112. I think we were at 157 last year. So um but that's single family one to four plus condos and townhomes. Gotcha. So still not, you know, when we were used to Days on the market? Oh, days on the market. Uh I don't have that. Darn it, I do. No, yesterday we were looking at uh 27 across the state of California, 27 days on the market, which was up two days from the previous week. So I do have that. See? said the blind man when he picked up his hammer and saw. Oh, really? Sure. I was just getting looking at somebody apologizing for not sending me their book.

That's okay. I didn't read it. Uh right. So, that was California numbers. Do we have any local numbers? We do have local numbers. No, we don't. I was looking at something that's called RealtyTrac and they look at stuff that's not that's not listed by a real estate agent as well. Okay. So, their numbers are listed by for sale by owner. Uh they're they're saying there are currently 435,585 properties for sale. They could be also looking at vacant land and things like that. Right. Um so, in the Yeah, cuz your numbers only look at single-family homes that you were talking about, right? Yeah, basically. Yeah. Um in the great uh county of Stanislaus, we currently have 760 homes on the market. We currently have about 2,700 realtors in in the market.

So, that's always interesting. And from the beginning of July to um yesterday, uh 177 homes have closed escrow for the month. And we've got 381 pending sales, which will help add to the closings by the end of this um What do we got? 4 more days? 3 more days? Yes. Well, it's 25th today. Yeah. So, it's 31 days in July. 6 more days. Yeah. Yeah. Yep, 6 more days. Yeah, and like last time, they'll every day, oh, we forgot to put all the closings in. Let's put them in. Yeah, like that. They by Whatever. by uh by rule, they have three calendar days after close to get them in. Oh, and Modesto's not going to kick anybody out right now. No, they're not. We just want you to pay your bill at the end of the month.

Yeah, cuz we got to pay a lawsuit. I don't think Well, they weren't part of the lawsuit, I don't think. I don't think. The money goes to the main two also, not just CAR. Yeah. Exactly. So, those are the facts, Jack. All right. So, those are not really So, I had some guy was the other day was I was qualifying. He's like, there's a lot of houses for sale in Modesto. I'm like, uh we have about 700 and some in Stanislaus County. Uh you're just now seeing homes for sale because you're thinking about buying a home. It's like, I'm buying a white car. I see a white car everywhere. My wife bought a Tesla. I see Teslas everywhere now. Exactly. I bought a Ford F-150. I see Ford F-150s everywhere. Um Is that how that work?

Last Tuesday in our sales meeting, Modesto listings active were 317. And that's all price ranges. That's from In Modesto? In Modesto. So, that's from zero to millions. 317, that's not a lot. Nothing. Yeah. Nothing. And there's a few agents in town. Yeah. So, if you get two three of those, you got 10% of the market. No kidding. That's 30 is 10%. Yeah. That's 1% Well, that would be nice to have 30. That tells you how that's how easy it is to figure out how big an office is, how many listings you have of the 300 in Modesto. That tells you your market share of Modesto. You're listening to Real Estate Jerky on PowerTalk 1360 KFIV. And I'm Mike Kelly, REMAX Executive Realtor right here in the Central Valley alongside Ed Parco, MBA, veteran, mortgage expert, and president of Lending for Living alongside REMAX Executive Realtor Mike Kelly.

Oh, you okay there? No. So, I finally had my first reverse mortgage for purchase to close this week. Um And how was that? Um the problem you run into is on a If you're doing a new home, the new home escrow companies have no clue how to do a reverse mortgage closing. It took a day and a quarter for them to balance with our closing department. Wow. Yeah, which is something that should have been done really easy. And I'm sure it's because they gave they every hour they looked at it, right, at escrow. Yeah. And then did this, sent it in. And then closing sent it back to them and said, okay, this doesn't match this. And then on my wire doesn't match this, blah blah blah. And so, that was the biggest headache out of the whole thing.

Uh other than that, it was easy. The um but it did save the gentleman um a lot of money. They only had to put down about 340 300 Let's just say 350,000 on a $610,000 home. Okay. And they get to never uh make another payment the rest of their life. And they got to They got to keep the difference from the house they sold in another in another place. I'm not going to tell them more than that. So, they were able to probably put away 150,000 into savings that they can use instead of pulling money out of the market to survive. Got you. Cuz right now, you don't want to pull that money out. We got stuff going up. Yeah, things are things are increasing. So, it was a great deal for them. Uh it just took It's the biggest and I I try to explain to people, reverse mortgages are They're like a aircraft carrier.

They don't turn fast. I like that analogy. Yeah. Yeah. Um hard left rudder. All right. It's Tuesday. We'll be there by Thursday. Yeah. And that thing with with reverse mortgages, it's a HUD. It's the old HUD. And so, when they do closings, you can't sign the day that you set that all up. You have to sign the next day. So, if you don't finish it by not getting back to the closer at 4:45 on that day, you're going to have to do it all over the next day. And then they sign the following day. That's what people don't understand. And that's It's It's like when I was in Southern California and I moved up to Northern California. Yeah. And I realized how backwards we were on mortgages up here uh cuz we do things down there a lot differently than we do up here.

Really? Yes, just especially like a lot of things. Uh just uh vesting. Okay. Down We shoot from the hip up here. Down there, we know what it is right away. We figure it out in the beginning and escrow has it. It's on And they do escrow instructions. They don't do this stuff. Does the agent write it into the contract? No, it's just done through escrow with the escrow instructions. Okay. And they have separate There's separate escrow and title companies. Uh up here, we all do it through the same company. Down there, they don't. You can, but they don't. Right, because they they never really did down there. And it's just they're doing things the way they've always done it. Right. And so, You've got an escrow company and you got a title company.

Right. So, it's just a little different. And then just it was a bunch of stuff I had So, what I did is I was cuz they at the end, they want to do vesting. But I want to know it up front so that I can When we order docs, everything's done and blah blah blah. And so, we created a form and just had them fill it out. And then now escrow does the same thing. They have a form. But uh you you just have to know these things. And it's just a little different. And so, every place does things a little different. I don't know why I was getting into that. But uh But that's I'm just saying cuz reverse mortgages are done differently, VA loans are done differently, FHA loans are done differently. But the only issue is with closing on a reverse mortgage, it's a little different.

When you're doing a refinance of a reverse mortgage, it's not a big deal uh with the closing department because it's just a refinance. But a purchase, you want to close at a certain time and a certain day. And on a builder, I'm just happy they're not like yelling down our throats. But it was their escrow company. Well, and didn't the builder kind of hold you up on a couple things as well? Well, the thing is there was a broken window. And they don't understand a broken window is uh a big thing for crime. I'm just kidding. Remember the broken window thing from New York? Yes. Yes. If you don't fix a broken window Anyway, so there's a broken window and it didn't get fixed till the Monday before the walkthrough.

Well, I couldn't order a reinspection of the appraisal because when you have the appraisal done, it says uh the house is done 60%. Well, how did you price it the value if it's only 60% done? Well, that's easy. They just come back and finish it. Right. And so, they So, we got that done. But it was just the closing took a lot longer than I thought it was going to take. The closing, what I mean by that is the closing department talking to escrow. Got you. Cuz it's not the Once the client signed, they'funded. It's like my other deals that were prefunded. So, they sign it, funds, and then they can record. It's just has to be done ahead planned. Can't just be, hey, they We're good. Let's have you sign at 2:00 today and we have it this morning.

No, it's got to be the next day. And I'm going to move on from there cuz I'm tired of talking about this. But I do know Well, it's very exciting and you got real excited about it. So, Oh no, it's just It's a great thing for my clients. It's not as complicated as it sounds. It's just you have to know what you're doing. And I know what I'm doing cuz I've done a lot of these. And if you need help on any of this stuff, reverse mortgages, give me a call, Ed Parco, 209-404-1915. Or you can just go to lendingforliving. com. You can put in all your information, get a quote for yourself without talking to anybody. You don't have to give them your name, phone number, address, all that kind of stuff. It will just figure that stuff out for you.

But then you can talk to us to make sure it's something you want to do. Got you. What now? Okay, I know what to do. This is Real Estate Jerky on PowerTalk 1360 KFIV. And I'm Mike Kelly, REMAX Executive Realtor right here in the Central Valley alongside Ed Parco, MBA, veteran, mortgage expert, and president of Lending for Living. And we were discussing reverse mortgage at the last, you know, and how to do a new construction purchase, which is a little bit different for most escrow officers who have never touched a reverse mortgage. Right. And when we do reverse mortgages, we use certain companies that that's what they understand how to do it. Yeah, it's just different. And it's uh like That's what they Yeah.

there So, they didn't have it set up properly because when they were told It's It's just certain things are done differently and they just have not done it before. And it And now And I'm sure it's only one they're going to do in the next 25 years. Right. So, they don't ever have to think about it again. Exactly. It was like the the last few years of short sales where you finally got everybody on the same page and we were moving along pretty good. You could do You could close a short sale in 20 days or so if you had all your paperwork up front. And then, you know, today if you got a short sale, unless you got someone very um familiar with the short sale process, you kind of flounder through it.

And the lender you're doing the short sale with or the mortgage um provider or servicer, they forgot how to do them too. Yeah, but they What? You're talking about the people that you're that's handling that has the actual loan. Yeah, they don't really know how to do it. They don't have a department anymore. They don't have people involved Right. to do any of that kind of stuff. And that's okay because they haven't been around a while. Uh but there are some of us who's been who did tons of those things and it's easy to do. It's A short sale is And people like, what's a short sale? A short sale is when you owe more on your home than it's worth. Uh we have one that was uh right now that's listed and they owe 420,000 and it's worth 410.

So, they're going to So, they're going to eat that at the at the lender and sell that to somebody to get rid of it instead of taking it back in a foreclosure. It's just better for them. They get rid of it. Back in the day though, uh they would rather foreclose because they got paid and then go sell it as a real estate option. And then they got paid again and then got paid also the money from the other thing. So, they got paid three times on the transaction if they took it back back then. People were like, why are they foreclosing? Cuz it's good money for them. Right. Yeah, you've got the You got the asset of the home, which, you know, prices were down, but they usually they covered their loan.

Yeah, but the government gave them money for all that stuff. All right. I know. That was such a crazy time. We We got an article from our illustrious producer. Um and it was about California is in a population slump. However, there are seven cities that are booming anyway. Illustrious. Yes. Count them. Why would I count them? I just told you seven cities. And no, Modesto's not one of them. No. No. We have a few homes we're building. Well, not enough. There's just not enough being built. Yeah, I thought for sure it would be what Tracy because you know how they built all those homes off of the with that 580 or a five whatever. Yeah. So, Right. 205 going over to the 580. Yeah. Yeah, whatever it is.

Yeah, down where you can go the back road, the 32. Well, and Patterson too. I mean, Patterson Right. I thought that's all Tracy Patterson right there. Yeah. Yeah, exactly. Uh it's just uh dust. You can see a uh hammer and a saw. And then behind the dust is completed projects. Yeah. So, but let's start with the least increased. Chico is up 25% cuz they sold everybody from the fire there, the park fire. They're I like how it says they're forged by fire. And what else? What's the next one on the list? That would be Roseville is up 36%. I can see that they're building a bunch of homes. I deal with an agent up there for VA and she and I just helped her buy a nice their forever home and she was a vet and she does a lot of veterans and she keeps referring me but she has a lot of new builds there and the problem is they will give you everything under the sun to bring them in because there's no competition still right eventually they won't even pay for the agent and then the agent will well we should look at a resale.

Oh yeah. No. Exactly. Let's not take you here. So Roseville so that's a you know the thing about Roseville is it gets warm but it gets cool I mean I think Wednesday we were uh not Tuesday we were 102 uh but Wednesday we're 93 and uh Sacramento was only 89 figure that one out yeah. Right. Are you crazy? Is it is it because of that breeze? Something like that off the Delta wherever the Delta is what is the Delta? Yeah. Where they got that water. Just kidding I know what the Delta is. All right I was wrong we should have went with Clovis cuz it was up 35% it was before 38 I can't figure those numbers out I was wrong so sorry. Clovis is a nice place in Fresno but I wouldn't want to live there. I didn't realize that Fresno was larger than Sacramento.

Is it by population or by size? By population. By population. Wow. I could swear I was that's how it was I could be totally wrong today but maybe our producer can check for us. Years ago I went to a water polo match in Clovis at a junior high a junior high school it looked like a college campus. Absolutely amazing they put so much money into their schools. The metro is not bigger. The metro is not. Yeah Fresno California has an estimated population of 555,549 and now let's see what Sacramento. 562 Sacramento City population is 538,753 so I think Ed was right. Wow. Ed was right again. The city I was not talking about so it's like saying oh where you from San Diego not all of San Diego are you in San Diego County are you in San Diego I was talking about just the city.

The city. But if Sacramento County is 1. 6 million residents so that's a lot bigger the broader Sacramento metropolitan area is a population exceeding 2. 4 million. Wow. Yeah so I was just talking city. That's a lot of people to be upset. Yeah. So Fresno isn't that like is that King? Fresno County right? Yeah so the surrounding suburbs of Fresno County the population is about 819,000 so it's smaller but I was just talking about the proper city. The proper city. I saw that once I was like wow. That is crazy. I must rather have Sacramento anyway so where were we that was Clovis uh that was Clovis so we had so so far we've done oh number five I think would be So what's number five? a local place around here.

The boom town of Blueprint Dublin. No it's Manteca is at 42% No. Well what I'm looking at. We're going from the lowest to the largest percentage increase yeah and Dublin is at 63% put your glasses on Grandpa. That's what I'm looking at. Uh Grandpa doesn't have to wear glasses. Great Grandpa great Grandpa. I am that. Uh Manteca is for is up 42% I could see that because they've been building there and building there and building there for as long as I've been here. Yeah and most of our Remax agents that work out of the Manteca area they're mostly selling new home. Mostly selling new home. Well because they again they're doing that how big is Manteca? I think there's like 14,000 people there. No nice try.

The city population has grown roughly 15. 7 so 15. 7% since 2020 since so that's 80 yeah so that's uh so they're thinking it's between 96,000 and 99,000. So they're in hundreds. Oh not the hundreds yet. How big is Modesto? Don't know. 236 the last I looked but that was probably a year ago. Is that the metro? That's probably the metro. Unincorporated we're pretty big I mean we're 220,000. 220 okay. Yeah. But Modesto Metropolitan statistical area encompassing all of Stanislaus County has a much larger population of 555,000 people. You know what I was going to guess 558. No. But I went over so I wouldn't win the prize. That's correct all right so that was Manteca was up 42% I know we're kind of all over the place I don't know if I did this yet.

Hold on one second. Okay. You're listening to real estate jerky I'm Ed Parco veteran NBA and mortgage advisor of lending for living alongside Remax executive realtor Mike Kelly and back to our numbers we're talking about new California cities um that have had cities large population growth since 2010 to 2025 and we were last at Manteca and that was up 42% and now we're going to talk about dub no we're going to Menifee. Mhm. So I'm just teasing you there because you said Dublin uh Menifee down in uh what some people would call Southern California uh I call desert uh and uh that's up 49%. That's right there near the border. Well pretty close. Border of what? California and whatever other state is down there.

No. No it's not nice try it's off the 215. Yeah. But again if you're going to live there why live there it's a desert. Well I I what about the next one? The next one is I'm shocked at I could not believe cuz I know some people building a lot of stuff in in Orange County which is uh where this is located and they're finding the um oil different wells and then they're recapping them and and doing all the stuff they have to do on these properties and that's how they're building down there so the same Irvine has increased by 50%. Mhm. That's a lot. And what did you say the expense was to do those cap those wells? Anywhere from 100,000 to a million per well. That's craziness. And they're still building.

Yeah. Well cuz I mean they can get you know some of those places um they they have 20 wells and it's going to cost $20 million but then they can they can build you know 100 homes and I think they're going to make a pack. Cuz they're selling those homes for what two three million or four five million? Four million on average yeah uh so Irvine's 318,629. That's bigger than Modesto. Yeah so Yeah. I guess there's room to grow that we didn't know about. All right and let's see that's Menifee Irvine we did Clovis Manteca Roseville Chico and the last one which you said well a long time ago. I know cuz I was looking to the left. Because you're a dislucky. You're you said 36% when it was really 63%. 63% yeah.

That's okay. Dublin's a nice little place. Is it? Yeah it's not bad. I wouldn't mind living there. Yeah. If I could but the If you needed to be closer to the airport. Just because it's cooler. It is cooler yeah. Sometimes sometimes. Yeah. They do get that heat that comes through there and you look at people and they're absolutely melting um what was it was it France that they were up in the eighties and they were just letting people die? 110 dude 115 not eighties. Don't want to put an air conditioner on that building cuz it'll make it mess up its Well they don't want because they don't want to put them in the windows. Yeah. Not in the wind the dog in the windows. Big dog. Oh Sac has river yeah it's called the Delta.

Yeah. Yes. We have canals. They're called laterals. All right uh yeah so that's what we got going on right now. Yes we do and that's so that's where I've seen increases in California uh it's funny how people just leave a message and then call right back again uh leave another message while you're at it. Yeah I I get that all the time and it's usually a certain um agent and I'm just like I would like to see the pop you know cuz we're only up 15. 7% Modesto that's because we haven't built enough homes or we haven't looked at Riverbank to see where they're at and because we haven't built enough homes. Yep. 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 questions or comments about our discussion today feel free to email us at radio@realestatejerky.

com in our next segment we'll dive a little deeper into the real estate market stay tuned for more insights and information on real estate jerky. Welcome back to real estate jerky on Power Talk 1360 KFIV where always provide you with the latest insights and information on the real estate industry I'm Ed Parco NBA veteran and mortgage expert and president of lending for living here alongside Remax executive realtor Mike Kelly all right we've been talking about we did uh national numbers which is up about 16,000 uh we did local stuff which was uh regional California we're down a little bit on listings locally we're down a little bit on listings. Yeah. Uh sales are down a little bit right now because it's nine of the month and people haven't closed but I I think July is going to end up being a slower month and I think it has a lot to do with what's going on with the economy with the war with the stuff people that are unsure what's going on plus Yep.

It's just timing. Plus we earlier in the week we saw an article that said uh 50 some percent of people are living you know certain age groups are living paycheck to paycheck which is they have less than 500 bucks in their account after they pay all their bills and that makes it really that's between 50 to 100,000 people making between 50 and 100,000 and then people making from 100,000 to 200,000 it was about I think they were they were still the same amount of people it was 22% of those people. Okay. So long story short when you have people who can't don't have money left over they're not going to go increase their debt they're not going to go increase their monthly payment to buy a house. Usually they don't.

Yeah well they shouldn't um until they are in the situation where they should and I always tell people talk to your parents maybe you can work something out with your parents they buy a property together a duplex or something and then you you live in one and they rent out the other side you you know there's ways around it just let's talk let's figure this out for you make a plan for the future. Yep. Because that's how you get you need to own and one of the things I want to talk about is uh was a population how many people own actual homes right now because everybody because everybody espouses the number oh 65% of people own their own home in America and according to a homeowner show homeowner rate in US is lower than you think this is an article we got from our producer new research says that there's only about 53% of American adults who own their own home not the commonly oh 65% calculated by the census bureau well again you know you got people going out who actually doing the census or who's filling those things out the same people voting.

Yes. Yes the dead people voting yeah. Yeah and there's there's 25 people that live at the same address and they all own it. Yeah we all live here and own it together. Yes it's a combine. So that's it. Well at 53% that's wouldn't you love to see that? It was calculated by the Federal Reserve Bank of Minneapolis yeah about 53% of adults own their own homes. Okay. Wouldn't you like to see that number at 75 or 80%? Well for adults under the age of 35 cuz that's probably 35 and older is who's the first time buyers now it's bleak only 22% are homeowners under the new measure all right so this had to do with everybody's like this new build that came out was going to cause everything to go up and get better and it's not it's not doing anything the home ownership act that they did it's not going to help us like they thought it was going to help us.

No and they and they very seldom do there's there's no mechanism in there to to make things actually happen all nice little words but there's no follow through. Right and and there's really no first you know we call the 3% down a first-time home buyer program it's not I mean it is you haven't you couldn't own a home in the last three years but there's no city giving a ton of money these days like they did before uh you understand because prior to that we had local we had local Riverbank and other people if you were low income. In the eighties Modesto was offering 10 grand towards down payment and closing costs on a couple of programs and I utilized that a lot with a lot of first-time buyers they would have never been in a home other than having that available to them.

Was that like the Nehemiah? No um that actually that was a good program too you know you can go up to what was it uh 9% but cuz I think 6% was allowed. I don't I never did any I do so yeah I do VA and the problem with during the 2000 uh here locally from 2002 when I move here to 2006 couldn't do any VA loans. A lot of Nehemiah back in the day. Right. No. During that period of time because the VA was a different program now it's amazing program you can do it anywhere and everywhere and the past stuff doesn't matter. We We have a way that we can do that. Um everybody loves a VA now, and that's what's amazing. I remember in the '90s with VA, you always had to talk about the non-allowables, what the buyer was not allowed to pay.

Yeah. Up to 1%. Exactly. Yes. And so you had to ask the seller to cover that stuff, and they were like, "Well, I got this other offer. They're not asking me to do any of that stuff. I guess I'm going to take that. " And then you had agents who would rail against VA. Oh, it takes forever. Takes 60 days to do a VA. Well, not anymore. You can do them in eight. I can. Yeah. Uh you're listening to Real Estate Jerky. I'm Ed Parcaut, MBA, veteran and mortgage advisor at Lending for Living and Loan Squad. Alongside REMAX Executive Realtor Mike Kelly, if you have questions or comments for us, feel free to reach out by emailing us at radio@realestatejerky. com. Do you have a song for Loan Squad yet? No.

Do you want me to write it? Sure, go ahead. Okay. Loan Squad, Loan Squad. That doesn't work. That's not writing it. That's just singing it. You got to get the words together. Yeah, I'm just getting some ideas. I'm getting some ideas. Uh I'm sure we can figure something out. There's so many AI stuff that we can use to come up with that stuff, and it's stuff I have to do. But uh let's see. Uh this next So the following weekend, uh I'm going to have to leave right away after the show because I got a wedding to go to in Minneapolis. In Minneapolis? Yeah, my daughter's getting married. Oh, by the way, what did I say? Um congratulations to my son and daughter-in-law. They had their first baby, so our first uh granddaughter.

Um and she uh unfortunately has my son's nose. What's the Oh. Who's Who's nose? It's not an ugly nose. It's just a Well, whose nose does your son have? Uh he has his uh dad's real nose, his biological father's nose. Yeah, not his mom's. Yeah. Okay. Gotcha. Okay. He's cuz they're all they're somewhat Hawaiian. Somewhat? Well, you have Marsha who is Right. Pennsylvania Dutch or whatever she is, plus then the dad was Hawaiian and other stuff. So you I don't know the percentages. So wait. I don't have their DNA test in front of me. Okay. Yeah, neither do I. I mean cuz when I had mine stuff, they said I was only 20% French. Only Yeah. Well, after a while, that stuff gets washed out, you know. Hey, there's some good news uh on the forefront.

What's that? Alex de Brac, you know, God bless his soul, uh former California vineyard is asking 33 million, but it's going to auction auction next month. Foreclosure auction or just auction? Yeah, just auction. They don't have a lot of Is he still alive? No, he passed. Okay. So they're trying to the heirs are trying to get rid of it. Yes. Yeah, so. 33 million? Yeah. Well, you know, that's a big number these days for people. Well, it is. I mean unless you got SpaceX money. Well, and That And that's changing San Diego. Yeah, exactly. And uh from uh Tesla is doing well. I'm just saying there's so much money being made now and AI coming out. Once they keep doing more of this stuff, you're going to see real estate go up in price even more.

So get in now before any more of these uh people go IPO and things. Yeah, be be the beneficiary of of a bunch of equity in a short period of time, you know, and then move where you want to. You could leave California and go to like uh Well, you know who just left Washington State? No. Don't say it's Starbucks. Yes, it's Starbucks. They told them, "By the way, if you pass that thing, we're out of here. " And now they're in Tennessee. Wow. But they haven't closed any of their stores. I don't know how that works. Let's ask the in and out lady. Corporate headquarters, the in and out lady, yeah. Yeah. So does that money just flow in there and you don't have to pay local taxes? I don't know. That'd be a good one to ask her cuz I don't pay attention to that stuff.

Of course you don't. I'm a realtor. I just want to get you into a home. All right, you're a realtor? Yeah, me too. That's all I care about. I want you to get into your forever home. I want you to get into your that home. And as I have a little a couple who are just them and I I talked to them about getting into 2-1 and there was one I said, "Like this one close to me. " And it was a nice neighborhood, beautiful inside homes, hardwood floors, everything. And it was only 379. Wow. It It was only like 1,100 square feet. That's But that's how all these homes in this neighborhood used to start it. And guess what? Is that a wrap? That's it. We're done. Wow. Thank you for being here, Mike, and thank you for listening to us and and actually supporting us.

We really appreciate you. You can find us on the web, social media, or you can shoot us an email at radio@realestatejerky. com. You can give me a call, Ed Parcaut, at 209-404-1915. Reach out to Mike Kelly at 209-968-5633. That's 209-968-5633. You want to see the show, don't worry. You can find it wherever you find your favorite podcast at. We're so proud to live in this country and still build personal wealth through home ownership. Join us here on Real Estate Jerky. We'll give you something to chew on every Saturday at noon and Sundays at 3:00 p. m. on Power Talk 1360 KFB. Mike, thanks for being on the show today. A pleasure being here, Ed. Thanks for tuning in 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.