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Northern Nevada's June Housing Report · The Jon Sanchez Show

• Jon G. Sanchez: Good Thursday afternoon to you. Welcome to the John Sanchez Show on News Talk seven eighty KOH. It's a pleasure to be with you and a pleasure to be with my co host around the horn we shall go. Corey Edge of Jerady, how you doing, Big C? In your in your red, white, and blue sh t shirt, yeah, with with Abraham Lincoln. spirit You spirit guy. I didn't I didn't think you I didn't think you got into stuff like that. I'm I'm impressed. Cory Edge: I'm doing great, how are you? Dwight Millard: Mm-hmm, yeah. Cory Edge: Best president ever, This is my night shirt, haven't changed. ⁓ haven't changed all day, John, if you want to know the truth. No, just kidding. No, no, no, I have. I took a shower and everything. I pull this out once a year. ⁓ Jon G. Sanchez: Does that mean you just got out of bed? All right, stand up. I want to see if you got the pajama bottoms on the on the bottom and and the house slippers. ⁓ Dwight Millard: Yeah, yeah, yeah, exactly. Jon G. Sanchez: Thank you. There you go. There you go. Millard Q Home Loans. Looking Devinair as always, my friend. How are you? Dwight Millard: Wow, yes. I'm doing fantastic, John, how are you? Jon G. Sanchez: Good. You look like you're in a better mood today. Dwight Millard: yeah, a little up, little down, but you ⁓ much than Tuesday, right? Yeah. Three day weekend always makes you smile. Jon G. Sanchez: There you go. There you go. Always, always better. Absolutely. Absolutely. Again, as a quick reminder, tomorrow the stock market is closed, ⁓ you're gonna be receiving a best of from us. We're gonna take the day off, and as Dwight said, have nice long three-day weekend. I think we all need it. You know, it's I don't know about you guys, but I I was telling my wife this. I can't believe, first of all, it's you know, here we are, July 2nd. But at the same time, it seems like it's been a long year. Do you guys feel that way too? Yeah. I don't know what it is. I I try to pinpoint it, but think because you know, we have gone through ⁓ much. I mean, if you really think about it from an economic standpoint, both all three of our respective industries, et cetera. Maybe that's what it is or something. But ⁓ but I think on the on the on the other side too, I think before we know it, we're gonna we're gonna blink our eyes and it's gonna be, you know, we're gonna be talking ⁓ Yeah. It it's gollies, just ⁓ just amazing how fast this look goes. ⁓ Cory Edge: Yeah. Yeah. Dwight Millard: ⁓ yeah. Cory Edge: Christmas. Yeah. It does go fast. Jon G. Sanchez: Yeah, absolutely. All right. Well, let me tell you what we have lined up for you. It is basically our Friday, so we're a little giddy. We're all a little tired. So ⁓ bear with us if you hear a lot of giggling and laughing and we're letting letting the hair down today, as the saying goes. But gonna get into a really, ⁓ impressive report here. Corey, course, ⁓ was able to provide to us the the ⁓ ⁓ month of June's ⁓ local real estate report for northern Nevada. And Folks, you don't want to miss this. I tell you, yeah, like I said, as Corey said, there's a lot of highs to it and there's a lot of lows to it. but I wanna I wanna give kudos to you and Dwight, I wanna give kudos to you. You guys both predicted that this was going to be one heck of a year. And based upon this I won't say what happened on the medium price, I'll just say it's very good news. But based upon the medium price that that is presented in this report, ⁓ you were spot on in your predictions. I mean, it's it's pretty amazing. Cory Edge: Yeah, it's, ⁓ you know, we'll get into the details and kind of what we think about it, but there's a lot of money sloshing around in the economy, as you know, better than anybody. And it's finding its way, you know, the housing market and specifically into this housing market. And as we talked about off air last on Tuesday, maybe it's some of these companies going public. Maybe it's California coming over. Like the, it's, it's evident to me now than ever that the high end is pulling this market up because ⁓ Jon G. Sanchez: Phew. Is there ever Cory Edge: As we'll get into the payment and get Dwight's viewpoint on it, the ⁓ payment that somebody has to pay to get into an average house with an average down payment and average interest rate is crazy. You know, it's nuts. So, but the market goes up. Jon G. Sanchez: Are are you are are are either of you hearing any frustration from buyers from the I know there's a lot of frustration, but from the standpoint that they feel the higher end market to your point, Corey, is driving the mid and the lower end market higher. I mean it's real estate's a domino effect. We never in ⁓ in you know, all my years I was raised in Reno and it you know, I have never seen the high end market going like it's going. I mean ⁓ again, the billionaire tax in California is a major driver to what's going on in the lake with all the Silicon Valley people coming in and it it's I mean, that's been an issue for a while, but it is really an issue now. And again, I'm just wondering if you're going if hearing like, you know, wait a minute here, why are these prices so high and everything? you know, who's driving this market? Well, it's the high ends driving the lower end. Or am I wrong? y tell me tell me your perspective on that. I know it's kind of backwards, but Cory Edge: I don't think, no, no, I don't think you're wrong, but I also don't know that a lot of people that are out there struggling trying to buy a $500,000 house with a 3 % down FHA really understand kind of what's happening around here. To give you an idea, not to let some of the cats out of the bags, the number of cash buyers in the market last month was 27%. The highest we ever hit was 32%. We average around 20. Jon G. Sanchez: Right. Okay. Okay. Cory Edge: So there's a lot of cash buyers in the market. There were roughly... So let me give you a little disclaimer on this report. It's only July 2nd. So I went ahead and pulled the report anyway, but there are some laggards that may have closed in June that won't get reported till maybe Monday. So these numbers might be off just a little bit. I don't want anybody to nitpick me to death, but we had around 500 sales and there were around 100 of those that were over a million dollars. Jon G. Sanchez: Okay. Lot of liquidity. ⁓ okay. No kidding. Wow. Yeah. Isn't that something? Cory Edge: ⁓ So 20 % of the market is a million plus. ⁓ And then we'll get into the pricing because the report now is able to break down of all the sales. What was the average sales price for somebody paying cash and what was the average sales price for somebody that had to finance? ⁓ And there's a difference. I a little bit of kudos to President Trump because he mentioned a couple of weeks ago, he doesn't want to... Dwight Millard: 20%, yeah. Jon G. Sanchez: Yeah. I like how you broke that down. Yeah, it's gonna be cadetta. Cory Edge: crash interest rates or crash this and that because it doesn't want to hurt the people that already own the homes. So it is a balancing act. You don't want to make everything so affordable that people that have been in the market or own the homes feel a 30 % drop. But at the same time, the people that can't get into homes are struggling. Jon G. Sanchez: Sure, sure. Yeah. But I've but I've never understood. I I heard that th those comments from him, but I I don't understand that. How how c if you more homes available for those that cannot afford ⁓ now, how can that have a negative impact for those of us that do own homes? I I don't understand. Cory Edge: only reason the prices are where they're at is the lack of inventory and supply and demand. So if you, if you, yeah, if you double supply, it's going to bring all the prices down, including the value of your house, and you're going to be pissed off about it, just like everybody else would. Jon G. Sanchez: Okay. ⁓ okay, from an inventory standpoint. All right, that would make sense then. Well, Dwight, you Dwight, you sent me a phenomenal article, I think it was yesterday, saying we don't have a housing problem, we have a buyer's problem nationwide. Expand on that real quick. Dwight Millard: Yeah, John, I think that you're starting to see the market and Corey's been spot on on this. You know, starting to see that that equilibrium act and now you're starting to kind of see it shift in a little bit, giving people more time, you know, a little bit more inventory. It just, think it's a, you know, I don't think it's a seasonal shift. think it's just one of those, you know, wait. Jon G. Sanchez: But do I it was the it was the demographic the article was was pointing to the demographic shift, right? There's not as many people being born in the US anymore and you know, not as bad as China of course, but it's a demogra there there's your industry, Corey's industry, starting to look for buyers is is real was the gist of the article. Dwight Millard: Right. Yep. Yeah, what if you, and that's a problem. What if you don't have buyers? Then what do you do? mean, if you get, if you only have a few out there, then you really got to market your home or whatever you're marketing at really attractive. So it was an interesting article. I just thought you guys would, you you right away, but I, know, it's. Jon G. Sanchez: Yeah, exactly. That pool is shrinking. Yeah. Do you want to tell the audience what do you want you want to tell the audience what my response was? Or do you want me to do it? He's chicken. He's checking. I said my in my response and I said it jokingly, I'll put a little emoji smiley face to Dwight's text on that. But I meant it seriously, and that is with all the the immigrants, the legal immigrants that are no longer in this country, they were home buyers. I don't care. I mean, you guys know as well as I do, that demographic is gone right now. So you want more buyers? Dwight Millard: You do it. Cory Edge: You should do it. Jon G. Sanchez: I'm not saying it's the right thing. I'm just saying that's that's one potential solution that we know is not gonna happen, at least under the Trump administration. Cory Edge: Sure. Dwight Millard: But John, remember it was what about a year ago, year and half ago, right when Trump got in, know, no longer could we do FHA loans for non-permanent resident aliens. You have to be a permanent resident alien. can't do it. Well, you had to demonstrate some things. I mean, you had to have some paperwork, but what I'm saying is know, Mae still hasn't ruled on it, but a lot of that buying class was the FHA government, you know, USDA. Jon G. Sanchez: Right. I was shocked that you could be four. So that that I'm like, Yeah yeah, I remember that. ⁓ yeah. Yeah. Dwight Millard: And so. Jon G. Sanchez: Any idea what percent any idea what percent they would be or what they were? Dwight Millard: I'm gonna guess, Corey, what do you think? 20 %? 22? Yeah. Yup. No, you're, I mean, but you saw this shift, but that was a year, about a year and a half ago. So, I mean, in a year and a half, we're now, you know, that article generates itself because they're starting to see that they're, wait, whoa, where'd all the buyers go? Jon G. Sanchez: No kidding. That could that's substantial. So my theory's not that that far off. ⁓ Neither one of you had the guts to respond to me though. ⁓ Cory Edge: Potentially, yeah. Jon G. Sanchez: Yeah. Right, right, right, exactly. yeah, it's fascinating. And and ⁓ again, Corey, ⁓ this is gonna be a great ⁓ great to get your guys' take on on this report. So appreciate you sending that over and and can't wait to get into it. Cause yeah, for those of you that are home buyers here in northern Nevada, I think you're gonna have a big smile on your face when you hear some of these numbers coming your way. Speaking of let me get to the stock market side of things today. Not the most day today, to be honest with you, at least on the SP and the NASDAQ side, but boy, did we have some excitement, some fireworks flying. On the Dow side. Listen to these numbers, guys. 595 point gain on the Dow. Now remember, we're getting up there. We closed at 52,900, a new record close. ⁓ sorry, Dwight, I have let you say that. but you know, 52,900, that is very significant. but you know, you hear, ⁓ my gosh, basically a 600 point gain, but we got pinch ourselves and say, okay, it was only 1.14% because this index is getting so large. That six, seven, eight hundred point move one direction or the other, percentage-wise, it's not that much anymore. So we got to put that in perspective. But the NASDAQ suffered again, we're going through this oscillating cycle at this point. One they they love the chip sector, one day they hate it, today they hated it, and pressure the NASDAQ lost 207.80% loss to 25832. ⁓ And SP was actually unchanged, ⁓ right on the goose egg at 7,483. So nothing ⁓ know, really ⁓ substantial on that side of it. When we come back, we will talk about what happened on the commodity side and of course get Dwight's take on the mortgage side of things. Cory and Dwight, our very special guest, as always on Tuesdays and Thursdays. Couldn't do this without them. Welcome back to the John Sanchez show on New Stock 780 KOH with Dwight Millard of On Q Home Loans and Corey Edge, of course, of Adrility. right, once again, a record setting day for the Dow side of things. We finished up 595 points. NASDAQ lost 207 SP right on the end change line, which rarely does that happen. Ms. let's get over to the world of mortgages. First oil prices down a penny, $68.68 a barrel. How bizarre is that? ⁓ $44.10 on gold prices to $4,125.90. And now it is your turn, my friend. Let's take it over to the bond market side and tell us how how we did on the on the the thirty year mortgage side of things. Dwight Millard: Yeah, so the good news is we lost five basis points. The bad news is you lost it yesterday. You know you're at 6.65 yesterday. It was a pretty bad market and then today you got a little bit of it back. 6.60 according mortgage news daily. It's still way up there, John. That's still not comfortable for a lot of people, but you know if you look at the FHA and the VA 6.17 on the FHA so can see the mortgage backed securities in the Jenny Mae markets trading a lot better than the Fannie Mae market so. Jon G. Sanchez: Right. Right. Dwight Millard: You know people are to the FHA. If going to do it two, if you're going to do a two step, you might as do an FHA. Get the best rate and refinance when rates go down. I mean, I don't know. Jon G. Sanchez: That's that would be my theory. If I was buying a house, I I you know, and I was okay in that price range, that's what I would do. I really would. I mean, smaller down payment, all the benefits you have said, easier qualifying and on and on and on. It's just yeah, I I think that's where you're gonna steal it. Right. Dwight Millard: Yeah. Yeah, well the mortgage insurance isn't too bad. If you're only putting 5 % down or something unconventional, mortgage insurance is pretty competitive. You know, remember several years ago they did life of loan mortgage insurance, so you're going to want out of it eventually. ⁓ a great like you said, like we were saying, it's a great two step going FHA little down refinance down the line. Jon G. Sanchez: Right. Right. D do you I hate to put you on the spot so I understand if you don't know. Where where where are we at here in Reno on on FHA Limit? Dwight Millard: What is it? I don't, I think it's 563. I'll check it. Yeah. Is it 563? 563, 500. They never make it an easy number, you know, but yeah. Yeah. Yeah. I got you. Yeah. Jon G. Sanchez: Didn't we get above this was it five okay, I was for some reason Yeah, yeah. Cory Edge: Okay. Jon G. Sanchez: ⁓ I know. I know. I never can remember. But yeah, I think it'd be yeah, if you could look that up at the break, that'd be that'd be great to to to look at. ⁓ on the bond market side of things today, to Dwight's point, it was again quiet there, just a one basis point increase on the tenure at four forty nine. But here's something up twelve basis points for the week. And remember the week has only been four days. So ⁓ yeah, a little little uptick there. All right, it is time to get to our topic today. Again, the ⁓ June Northern Nevada housing data that Mr. Edge has provided for us. Cory Edge: You Jon G. Sanchez: Corey, do we start with the the outstanding great news? Cory Edge: Again, it's great for 50 % of the people listening and the other 50 % will be pissed off. Jon G. Sanchez: Yeah. Yeah. All right. So here we go. Here's the great news. The median sales price here in northern Nevada for the month of June, Sparks, six and forty eight thousand nine hundred and ninety-nine dollars. All time Corey? Dwight Millard: Yeah. Cory Edge: Yeah, all time high. And if you remember last month, we 630, which was the same. That was the previous all time high that we had hit two or three years before that. And it had been bumping up against there. We finally punched through last month. And now, I don't know. mean, you're the you're the chart guy. Like you punch through that ceiling. Who knows what happens now? But ⁓ telling you. ⁓ Jon G. Sanchez: Yes. It looks like the Dow Jones industrial average is just going up. Up, up, up. Cory Edge: If you overlay the stock market on this housing chart, it's a match. I it's exactly what's driving everything. Jon G. Sanchez: ⁓ yeah. Yeah. Yeah, it is. It's what we've always said. Dwight Millard: But John, more good news. So FHA is 638-250. So trying to keep, trying to keep. Jon G. Sanchez: See, I knew it. Okay. Yeah. Yeah. Yep. I thought we were over six. Cory Edge: Wow. Yes, me too. Holy smokes. Jon G. Sanchez: Yeah. Cory Edge: Wow. Jon G. Sanchez: Okay. Very good. Very good. All right. Great news there. Okay. So, Corey, let's go back. Thanks, Dwight. Let's go back to the median sales price here. Six forty-eight, nine nine nine. Corey, you're a numbers guy. I know you analyze this and you probably are saying, Okay, folks, let's not get too excited, right? As Corey says, the pendulum always swings one way or the other, because I'm guessing there were some high end prices or end sales that You can't tell me in one month we went what well where were we? Six thirty five you six thirty. So, you know, basically nineteen thousand dollars in one month. And in where the mortgage rates were what Dwight, probably in the last month they've what, held steady gone up, probably edged up more than anything. About to say. So am I right on that assumption, Corey? That Cory Edge: 630. So it's interesting. We had higher sales prices in May. There were one or two sales in May that had huge numbers on them. They probably pulled some stuff, $5 or $6 million. But in June, didn't have, there were a couple of nice big sales, but we had more not so big sales. Does that make sense? There was a lot in the two, three million range, million and a half. Jon G. Sanchez: Remember you saying that? Yeah. Like three or four million dollars or something. Yeah. Five or six, okay. ⁓ interesting. Okay. More of the normal. Cory Edge: Right. there again, you have roughly 100 of them over a million are pulling it up. So it's a Jon G. Sanchez: It's unheard of. I re I remember when we when the three of us started together back in ⁓ eight, ⁓ nine. I I remember like it was yesterday, Corey, periodically when we do this report, you'd say, Hey John, we had a million dollar sale, right? It was like and now it's like, Yeah, we had a hundred of them in one month. I crazy, crazy. Cory Edge: Yes. Well, and it was so when I was looking at that this morning, I can plot it out on the map and it shows me where all 100 are like overlaid over Reno Sparks. So you can see, and I was looking at a couple like, wow, that I don't want to get in specific areas, but there's a couple of areas where those houses are selling for a million bucks. And sure enough, I mean, in some areas that you wouldn't think had million dollar houses, there's two or three. it's like, don't know. I kind of equated to breaking the four minute mile, right? Like, OK, well, the first one got it. So now ⁓ else is going to ask it. Jon G. Sanchez: ⁓ that was gonna be my question. Right, right. Yeah. Yep. ⁓ yeah. Everyone's gonna do it. Yeah. Because before before when we talked million, two million dollar pricing, it was pretty simple to narrow it down, right? It was Montro, it was South yeah, Southwest Reno, exactly. on your map, now why why don't you want to reveal where that area is? Cory Edge: ⁓ So it's becoming the new thing. Southwest Reno, period. I'm just saying out in the North Valleys, there was multiple houses over different parts of Sparks. were multiple Pleasant Valley. There were a couple just spots that you normally wouldn't see. Maybe every once in while you'd see a one off like you get out in far North Valleys. Well, maybe somebody had 200 acres of a nice big house. Yeah, you might pinch over a million. Well, now that's just in a little, you know, in a neighborhood house. So it's interesting. My she's going to hate me for saying this, but Jon G. Sanchez: Okay. Really? Okay, so that that is unusual. Interesting. Okay. Right, right. Isn't there something? Cory Edge: My sister's old neighborhood, sold their house like five years ago. She bought another one, so she's happy. I don't remember what we sold for on a little production cul-de-sac in a certain part of Sparks. Somebody on that same cul-de-sac just closed for over a million bucks. She sold for like in the mid-sixes, and it was the high point. And so, and that was a production home built by somebody that Dwight and I used to be in business with. So it's like a million dollars? Are you kidding me? Jon G. Sanchez: I was gonna say, I bet it wasn't a million. Yeah. Interesting. Yeah, yeah. Crazy, crazy, amazing. Yes. Yes. Really? Fifteen percent. Wow, that is. Crazy. Yeah. Right, right. Yeah, it's it it it's amazing. Corey, wa I'm curious. may or may not know the answer to this one. So those people are selling the I'll I'm gonna ⁓ edge more the the two million dollar mark. Where are they going? Are are they getting out of the area? I can't imagine they're gonna take that that amount of proceeds and go buy something of equivalent or greater value. Not that they have to, because it's not a ten thirty one, but you know, w where are you hearing they're going? Cory Edge: Sure. I think you'd be surprised. And I don't want to pretend like I dabble with a bunch of millionaires every day and hang out because most of my clients are investors. So don't get involved in the residential stuff. But I've ⁓ four I know that have done that in the last two months and they all stayed in Reno. So they were just swapping houses. One of wanted a smaller house, but they were both very high priced houses. ⁓ One of was creating more of a family compound. So different type of property, but same similar price range, if you will. Jon G. Sanchez: They did. Okay. Yeah. Okay. Right. Interesting. Cory Edge: So not their traditional of like, I'm going to sell for four million and now I want to buy eight million. It's like, I want to sell for four and maybe I'll have to pay four point five. But this house fits my needs better today than the other one. Jon G. Sanchez: Right, right. Right. Right. And you gotta figure when you get up into that price range, you you are absolutely even though it's primary, you are absolutely talking and I would assume in probably ninety nine percent of those cases, you're talking paying capital gains tax, right? You're well above the half a million dollar exclusion. Cory Edge: Based on the basis that these people have. Yeah, because these are, mean, anybody who has held the house from 2018 or 19 till now has seen it go up 100%, like 100 % or more. And so there's no way, I mean, I guess in the smaller price range it would work, but by and large, yeah, you're going to have some capital gains exposure no matter Jon G. Sanchez: Right, right. Yeah, yeah. Cory Edge: Yeah. ⁓ yeah. Jon G. Sanchez: Yep. Yep. Yep. Cory Edge: and everybody thought it was going to zero. Like, it's going to keep going. Jon G. Sanchez: That's a that that that's that that that's that that's when we created our self directed IRA business and Corey went out and bought condos for a hundred thousand or sometimes than that, right, Corey? And and and you and you're flipping them for three or four times that value inside the IRA. That's what that's why we're bringing that program back for next when when that time happens again. I don't know if we'll ever go through those, ⁓ you know, that that big of a decline, but Cory Edge: ⁓ way cheaper, yeah. Jon G. Sanchez: But no, there's opportunities with the ⁓ the IRAs in real estate, no doubt about it. Yeah, Dwight, that's ⁓ that's amazing. That is going down memory lane. My gosh. Corey, that's ⁓ that's absolutely fascinating. Good. Cory Edge: Well, yeah, and let's go on the pricing, just to give you an idea again, 20 percent, 27 percent of the market was cash. If you look at the pricing, the average house price for the person that paid cash was seven hundred eighty six thousand. The average price for the person had to finance was six hundred fifteen, like I mentioned. So you can see where that cash like everybody assumes, oh, cash, that must be the higher end homes and not every single time. But this does kind of. flush that out to say, okay, yeah, there's cash there and it is going to pull that higher end up a little bit. ⁓ And so it's, we'll what happens. So, ⁓ go ahead. Jon G. Sanchez: Yeah. Why would why would anybody in their right mind quick answer or if you guys or if you guys want to hold it till we get back, why would anybody in their right mind plop down seven hundred, eight hundred thousand dollars in cash instead of financing? It makes no sense to me. Yeah. Yeah. Cory Edge: I mean, I'll give you my take on it. Like I have multiple clients, would say, the last 12 months that have paid cash. And it was because they had plenty of extra cash left over. Like people's pocketbooks are so stuffed right now because of the chaos that's happening in the market. They're just like, ⁓ yeah, I'll spend, I'll write a check for a couple million because I have plenty more left and I'm going to make that back. Correct. So it's just not even an issue. Jon G. Sanchez: The the the stupid money as they call it, right? Yeah. Yeah. Right. I got ten million, so what's two. Yeah. Okay. You agree with that, Dwight? Yeah. Crazy. Crazy. Crazy. right. Great start, boys. All right. We'll come back and continue our discussion on the local ⁓ market with Corey and Dwight. Welcome back to the John Sanchez show on New Stock 780 KOH with Corey Is Vidge related Dwight Millard of OnQ Home Loans. Once again, a record setting day for the Dow. Nice way to go into the long weekend. Again, market close tomorrow. 595 gain on the Dow to close at 52,900 right on the nose. lost 207 and the SP unchanged. All we're just getting into our local ⁓ real estate report for here in northern Nevada. again, Corey put together this great report. ⁓ we main thing we got to so far, the only thing we've got to, because we've a lot of discussion about this. Record setting median price now for the month of June, six hundred and forty eight thousand nine hundred and ninety-nine dollars. And again, that's an increase of six point four percent from May. Corey, anything else you want to mention on the medium price before we move on to some of the other data points. Cory Edge: No, but I do think on the median prices, it equates to another report that we can pull out of here and Dwight, you know, however you want to comment on it. But it takes the estimated mortgage. I don't know what they use for down payment, plus a prevailing 30 year fixed rate, plus estimated taxes, plus estimated insurance. And they what the average mortgage payment would be as the price goes up. So in June, we hit $4721. And their estimation would be the average mortgage. And in 2016, it was $1,500 using the same data set. So Dwight, I don't know what you see payment wise, but that's how they track it. And that's the highest ever on record. Jon G. Sanchez: Wow. Dwight Millard: Wow. Yeah, I I what it know, and that's ⁓ know, that goes with the the you know, we th we talked about the increase in taxes and insurance, but John, look at it this way. If you're going conventional, ten percent sixty-five grand right now. I mean, not a lot of people sit there with sixty-five grand. You know, even your five percent down is thirty-two five. I mean, you're people are having to put a lot of money in. ⁓ Jon G. Sanchez: Is that Yeah, that's right. That's right. Right. Yes. Dwight Millard: Just to get any relief. And again, remember, I mean, for every ten thousand you can you know, without getting into big disclaimers, every ten thousand is about fifty, fifty five bucks in your payment. So it's you're not you really gotta put a lot of money down to move the needle is the you know. Jon G. Sanchez: I want to go over this number again now that I'm seeing the data, Corey. So let's let's put the disclaimer here. So this is this four thousand seven hundred and twenty-one dollar per month mortgage payment. A year ago, June obviously of twenty twenty five, it was four thousand five seventy three. And it's based upon the median estimated mortgage payment, based upon closed pricing and prevailing thirty year fixed rates, including again ⁓ estimated taxes and insurance for ⁓ closed listings. Almost five thousand dollars a month. Dwight Millard: So John, just use that number on it, just use that number and go a 49% on conventional. Without any debt, you'd have to have ninety six hundred dollars in income, gross income. Yep. Ninety-six hundred. So no debt, just housing, you would have you would need income of ninety-six hundred dollars to qualify in that debt to income range for conventional. Jon G. Sanchez: No kidding. Okay, repeat that one more time. Cory Edge: So. Jon G. Sanchez: Well, I guess that's about where where we've talked about where you you s yeah, you were saying before, Dwight, you need about that that one twenty mark now just to just to qualify for the median price, right? Cory Edge: 120. Dwight Millard: Yeah. Yeah. Wait, and and again, that's just assuming no debt either. You know, you start t tacking on a car payment or two. I mean, it gets further and further away. That's why the there's the co borrowers coming in and everything else. Jon G. Sanchez: Right. Yeah, that's nothing else. Yeah. College loans. Yeah. Cory Edge: Well, and the problem with that is there's not one person that has no debt as far as like you might not have credit cards and stuff, but you got to have Obamacare. You got to have this. You got it. Like there's all these mandated things that don't show up on the debt side that you pay on a monthly basis, whether you like it or not. Electricity like is going higher. So it's a five dollar. I mean, can you imagine if you were a first time buyer, 18 years old, I'm going to go buy a house. That'd be five thousand dollars a month. ⁓ Jon G. Sanchez: In reality it's debt, but on paper it's not. Yeah. Yeah. Yeah, right. Right. is incredible. That is incredible. All right. Let's go down to ⁓ the next ⁓ data point on the report. Closed sales, Corey, four hundred and eighty-five closed sales in June, ⁓ up nine point seven percent month over month, year over year up eleven and a half percent. Cory Edge: I think it was 750. I'm like, I can't do it. No, I don't want to. Ugh. Yeah, and so that's a good number. It's going to be up the activity level. This is my thing, and we'll see if it holds true. But for the last four years, it is held true that this Fourth of July time period is the top of the market. So. Jon G. Sanchez: You've always said that. Yeah. Cory Edge: It's not unusual to see the most amount of activity happening right now as we're doing the show. So up 10%, you know, month over month up 12 % almost year over year. This is the sweet spot right now. And the only thing I can tell people unless I'm wrong this year is if your house is still on the market, you know, through July and towards the end of July, you need to reduce the price if you plan to sell it this year, because this is as good as it's going to get this year. Jon G. Sanchez: Okay. As good as it's gonna get. Yep. I was gonna say that. Get get get while it getting's good. want to go back and correct myself. I think I said something wrong back to the median price. didn't want to be accurate with you. So the price rose three percent month over month, so from May to June, year over year, up six point percent. So so make sure we're clear there. All right, ⁓ boy, is another nice number, Corey. Median days to contract, 15 days. That's it. Up twenty five percent. Cory Edge: Yep. Jon G. Sanchez: Yeah, which is kinda bizarre to me. I'm trying to figure that number out, month over month, down basically thirty two percent year over year. Cory Edge: So this one is interesting. So up 25%, I think maybe it was 14 days or 13 and a half last month. But those two numbers, and I sent you guys the report with the graph of how this equates out, that is the lowest ever, 15 days. So put it on the market, it's an escrow 15 days later. So all the way back to 16, that is the lowest amount of time that we have recorded. And you're at all time high prices. Do you know what I mean? Jon G. Sanchez: Right. It's a small number. Cory Edge: Like it's those two things shouldn't go together, but it's the lack of inventory and it is the roaring 20s in the stock market. And everybody's like, how many hundreds of thousands do I have to give you? I'll take it. So. Jon G. Sanchez: No, no. Okay. Now the next one, which can be deceiving, and Corey always likes to give an explanation. List price received ninety nine point two percent. And as you always say, Corey, what? Cory Edge: That is off the last price. It doesn't count the price decreases. But I'll tell you, I went back and did a report that showed that compared to the first list price to the sale price. And I think it was like at 97 or 98 too. So they're not that far off. But still 99.2. And that number always kind of hovers there. it Jon G. Sanchez: Okay. Mm. Not far off, yeah. Okay. Right. Cory Edge: It re-solidifies my point that if you price it right, it will sell and it will sell for what you're asking. I'll give you a perfect example if you have time. I just closed a house yesterday, a client of mine, she bought a house. It was over in Sparks. It's something we had been watching. They listed, I'll just give you the numbers. I think they were at 575 and then it went to 560 and then it went to whatever it went. It ended up down at 520. We wrote them a full price 520 offer because that's what it was worth. They got two... Jon G. Sanchez: 'Cause that was w that's what it was worth. Cory Edge: That seller, which my client was the buyer, I didn't know the seller, that seller had two other offers on that same property at the same time we were writing. The only difference was they finally priced it where it should have been priced the whole time. So there's no harm in trying to get more. But if you're just sitting on the market, you're wasting people's time. Jon G. Sanchez: Yeah. Yep. Yep. Amazing. I do anything you want to add to those before I move on to the next one, real quick? Okay. ⁓ Yeah, ⁓ sold price per square foot, three hundred and thirty-five dollars per square foot, two point two percent month over month, up three point seven year over year. ⁓ Number of new ⁓ Corey, let's tackle this one when we come back. Number of new listings, five hundred and thirty-three, down twelve point eight month over month, down nine point four percent year over year. Dwight Millard: Yeah, no solid numbers. Jon G. Sanchez: So my question to you when we come back is why would we be down, you know, roughly thirteen percent month over month if this is the peak selling season, right? We're we're there. We're at the apex right now as we sit. So let's get that answer out of you when we come back. Dwight Millard: Yeah. Jon G. Sanchez: Welcome back to the John Sanchez show on Newstock seven eighty KOH. Mr. Millard, let's get your phone number going, sir. Dwight Millard: Yes, sir. Two four zero two zero two two. Jon G. Sanchez: Thank you, Mr. Corriage. Phone number, sir. Cory Edge: 673-6700. Jon G. Sanchez: Beautiful. Thank you, boys. right. Let's get back to our local real estate report and delve into some more numbers. So, Corey, ⁓ as said, as we're going to break. All right, here we go. New listings, 533 in the month of June, down 12.8% ⁓ month month, down 9.4% year over year. Explain that one. Why are why why you know why is it down 13% month over month? ⁓ Cory Edge: My only explanation, and I may be completely wrong, is we are at the apex of the market for the year. So you're going to see fewer and fewer on houses and listings and sales as we get through the year. July may be fine numbers, but then usually you get into August, September. you get into November, December. These numbers just keep going down. So I'm not super surprised to see the... new listings go down. For what reason? I have no idea. I have no idea why the market peaks July 4th and then goes down, but that's what it always does. Jon G. Sanchez: Okay. Okay. No. Okay. right. Very good. Okay, active inventory, eight hundred and thirty one homes, down two point one percent month over month, but down twenty eight point five percent year over year. Oof. Cory Edge: Yeah, so we're just, if we don't get the new listings, which as we just talked about, we're not going to get as many and we keep selling, we're just going to chew into that active inventory. That number will get smaller and smaller and smaller. It should hit the lowest number somewhere around December or January. And then it will start, you know, filling itself back in next year. this is the time. Jon G. Sanchez: And for you potential buyers, that number that Corey's referring to is what we call the month supply of inventory. In the month of June, we're sitting only at one point seven months, down ten point eight percent month over month, down thirty five point nine percent year over year. This boys is why we're seeing record median prices, right? Cory Edge: Correct. Yes. I mean, it's kind of like if you want to own a house, you're going to pay the price. Period. And if you won't do it, then somebody else will because there's so few houses. was doing comps for when I put on yesterday. I pulled comps in the neighborhood and I found 10 comparables year to day, but they were all sold. There was not one house available, which means I can take the last price and bump it a little bit. Because if you want to own a house in this neighborhood, this is the only one you have the option to purchase. And that's what forces a price is. Jon G. Sanchez: And and again, where are these people going, Corey? We were talking about this off air. I'd like you to share that. Cory Edge: Most I would say I don't want to say most. A lot of the clients I deal with are making a lateral move. they're just moving from one house to another. That particular client that I just gave you the example about that one house there, an out of state investor who has owned that house for so many, many years ago. And then, you know, I deal with a lot of attorneys. So I deal with divorces in the states, just like our good friend Richard Lace. And unfortunately, those people have already gone to their ultimate home. And so they don't have to make the lateral move. I do think a lot of people make lateral moves, you know, they just they stay in the area bigger There's a lot of people that move to get smaller now. It's not always a move up higher. It's a move down player Demographic shift. Yeah Jon G. Sanchez: Yes. Yeah. It's a demographic shift, right? It's the baby boomers. Yeah. Dwight Millard: Yeah. So so John, it goes to show you that that people are moving in spite of their low interest rates. They're three and a half, they're four, they're four and a half, whatever. They're they're they're just tired of it now. That we've been talking about this now for almost four years. Jon G. Sanchez: Yep. Yeah. Yeah. Right. Right. Right. Cory Edge: when they have so much built up equity, like so much equity. Yeah, that's exactly what they're doing. Dwight Millard: Yeah. They're they're trading the equity off for the rate. Yeah. Jon G. Sanchez: Yeah, I was gonna say, yeah, there comes a point where you're like, I can't bypass making this type of profit, ⁓ of what my rate is. And and I can always refinance and ⁓ I can't always, you know, walk away with ⁓ whatever, half a million dollars profit. Yeah, you know, that type of thing. It's ⁓ it's amazing, guys. It is it is absolutely amazing. you look at the resiliency of the stock market, the resiliency of the the the real estate market with again, very high mortgage rates, not having an impact and median prices. Dwight Millard: Yeah. Yeah. Cory Edge: Correct. Jon G. Sanchez: ⁓ Dwight, is this a trend do you think across the country? I mean, you you you're really dialed in on a national basis now also. or is it pockets? Dwight Millard: I I think it's pockets. I think that you're seeing some growing inventory in some of the areas that have been tight, ⁓ you know, it's still tight inventory all the way throughout the country, I think. There's a lot of movement, a lot of migration still going on. So I think you're gonna see this at least for the next couple of years. Jon G. Sanchez: Corey, is it becoming more of a challenge with with this medium prices? for the investor to to cash flow and to get a a a a cap rate, it just seems like it'd be so diffic it it's like they almost would be forgetting about the cash flow side of it and looking just for future appreciation, which nothing wrong with that, but seemed to me it'd be a challenge. Cory Edge: Well, there's a little bit wrong with that because if you're negative every month, crossing your fingers for future appreciation, that's kind how we got into a little bit of the mess in 2007. But yeah, it's incredibly hard. I've always told like, if you call me and say, I want an investment property, single family house, three bedroom, two bath, 1800 square feet. Jon G. Sanchez: Yep, I know. Yep. Cory Edge: I'd say, John, you're competing against the people that want to own that house and their cap rate is zero or negative because they're going to pay a lot more than what makes sense to you. So it makes no, it doesn't make any sense. But it is interesting because I agree with Dwight. There's pockets. I don't know yet if what we're seeing is because of what's happening in California. So maybe this isn't happening everywhere. then there was an article in The Wall Street Journal this morning that San County had the highest vacancy rate in history their apartments because there's too many apartments being built. Jon G. Sanchez: Interesting. Cory Edge: and they can't absorb them all. it's not it's not all, you know, flowers and daisies and everybody like it is very pocketed and Reno may just be a good pocket and we just don't know it yet. We'll just have to watch it and see. Jon G. Sanchez: Yeah. Right, right. I think we're obviously we sit in a very unique situation of obviously the the basics that we all know. Right across the Sierras from California, where again record record prices are being set there. ⁓ coming here, of course, tax free state. We've got a lot of a lot of great benefits. And are gonna run out of land, Corey? Cory Edge: There's so much land, but a lot of it's owned by the government and a lot of it you got to get through the municipal. Like, don't get me started on what it will take to get through a municipal permit. Dwight Millard: Yeah. Jon G. Sanchez: Darn it, I was ⁓ I only got thirty seconds left. I I should have started that question earlier. Darn it. ⁓ Cory Edge: Yeah. Hey, if you want to build a house move in in 10 years, go for your permit today because it's going to take 10 years for these morons down at City Hall to approve anything. Jon G. Sanchez: Yeah. And with that said, folks, we are gonna call it a wrap for the day. happy Fourth of July. We'll see everybody on Monday. God bless. Happy fourth. We'll see you guys.