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Reno Home Prices Are Up 6.5%, But Where Are The Sellers? · The Jon Sanchez Show

• Jon G. Sanchez: Good Tuesday afternoon to you. Welcome to the John Sanchez show on News Talk 780 KOH. Pleasure to be with you and a pleasure. We got the whole crew, the posse, the gang. It's all together. The originals. Dwight Millard on Q Home Loans. Welcome back, my friend. We c we send a congratulations. Yep, we send a congratulations Dwight Millard: You did. Yeah, did. Yep. Jon G. Sanchez: to you on the air and your incredible family and Trend and what an accomplishment that she achieved at cha obtaining her white coat. And so, Once again, just one more time, congratulations to you and to her. She's the one doing all the hard work. You're just you're you're just the handsome guy saying, Yes, that's my daughter. Dwight Millard: Yeah, absolutely. Cory: You're just paying for it. Jon G. Sanchez: That's my that's my kid over there. That's my kid. Dwight Millard: That's right. That's right. That's right. Woohoo woo. Yeah. No, I thank you guys for letting me it was just amazing. And and you know, she's got thirty, about thirty-one months of hard. I mean, they got three, four tests you know, that's what college is supposed to be. But they Jon G. Sanchez: Yeah, yeah. Dwight Millard: they've got three or four tests a week and labs and so but we got about th doctorate. Yeah, yeah. And it's a doctorate program. Yeah, it's a doctorate program. Yeah, yeah. Jon G. Sanchez: I had no idea PT school was that hard. I had no idea. Yeah. So sh so she's getting a doctorate. I didn't realize that. Now it makes sense. You never told me that side of it. Okay. Dwight Millard: Yeah, it's a it's well that's what yeah, so now they yeah, it's a doctorate program. It's a it's a Jon G. Sanchez: So you're gonna have a doctor in the fam? Dwight Millard: thirty-three thirty-three month you know schooling and it's pretty intense. They go they go six days a week. Yeah, they go six days a week. Yeah. Jon G. Sanchez: Okay. Okay. I can imagine. Do they really And and what school is she going to again? Dwight Millard: University of North Texas in Fort Worth. Yeah, so they they Jon G. Sanchez: Okay. Okay. Okay. Dwight Millard: do a little bit of labs in Frisco, but it's all north north Texas stuff. So yeah. Yeah, yeah, yeah. Jon G. Sanchez: Interesting. Interesting. We gonna get the girl back home when when she's all up and running, you think, or you think sh no telling, yeah? Dwight Millard: I I don't know. I don't I d I don't know, John. I you know, yeah, it's it's hard to tell. She's she's excited to kind of just get this going and and so Jon G. Sanchez: And this is the this is the beautiful little girl at what, seven, eight years old. She came into our office right in the middle of our show and and we we pitched a bunch of T shirts for her to raise money and or sweatshirts, sweatshirts. Did you? Yeah. Dwight Millard: Sweatshirts. I just brought that up. John, I just brought that up yesterday. Yeah, we were we were looking at this is the Builders Association. We were doing something I said, well, several years ago, you know, on John's Jon G. Sanchez: A long time ago. Dwight Millard: on John's show, I think we raised 600 sweatshirts. You know, I was over there on Virginia Street with Academy. Yeah, that was Jon G. Sanchez: Yeah, yeah, yeah, exact God. Cory: Mm-hmm. Dwight Millard: that was crazy. That was but it was it was fun. Yeah. Yeah. Jon G. Sanchez: Well think think about that. Think about that. Yeah, raising raising money for sweatshirts and now she's in medical school. Just amazing. Amazing. Mr. Cory Dwight Millard: Mm. Yeah. Yeah. Well thank you. Jon G. Sanchez: Edge Vengeality, how doing, Bixie? Cory: I'm doing good. Jon G. Sanchez: Good, good. you're breaking up again, Corey. Darn it. Sorry. yeah, Corey, why don't you go yeah, Dwight Millard: What what what did he ask? Jon G. Sanchez: log log back in one more time, Corey. Sorry about that. Yeah, there we go. All right, Corey, get us back there. It's got some internet problems today. Well, Dwight Millard: It's yeah, no. Jon G. Sanchez: seems like one of us always do. It's just it's just Dwight Millard: It it d it doesn't fail. I don't it it and you know you sit there, John, you got full bars, you only know what I I only know what I know, you Jon G. Sanchez: Yeah. Yep. Dwight Millard: know, but yeah, it's it's crazy though how and unpredictable Jon G. Sanchez: It is indeed. It is. Dwight Millard: it can still be. Jon G. Sanchez: Yes. it absolutely can be unpredictable. You better believe it. All right. Well, let me tell you what we have lined up and then we'll let Corey his he's logging back in right now to get his questions going. So this is one of my favorite shows I we get to do each and every month, and that's when Corey presents us with the local Northern Nevada real estate data, right? We're gonna talk about the new median price, how long it's taken to sell a home, price per square foot, inventory levels. Everything you need to know to make informed decisions, whether you're a buyer or a seller. All right, Mr. Edge, great to have you back. Now, throw that football question. We can't get away from that one first. Cory: I I just wanna know who people in Frisco, Texas are rooting for. Dwight Millard: Yeah, no. It's kind of crazy because we call Frisco out here. So they they think I'm talking about Frisco, Texas, and yeah, they Yeah, no, yeah, no, so yeah, it's San Francisco, so it's Frisco, Texas. So yeah, it's kind of interesting. You have to be careful because it's San Francisco in Texas, right? Yeah. Jon G. Sanchez: I did I thought that's what you were talking about too. Okay. Frisco, Texas? I've never heard of that before. Interesting. Yeah, I can imagine. Yeah. Yep. Yep. Cory: Gotcha. Jon G. Sanchez: Amazing. Amazing. All right, boys. Well, let's get things rolling here. Get the stock market bad news out of the way, the bond market bad news out of the way. And then we're gonna get over to Corey and start going through the the local real estate data. Interesting report this month, Corey. Interesting report. As it always is. All right, let's get to the stock market side. let me just get the bad news out of the way. Tough go for almost the entire session today. We finished down 419 on the Dow. Again, it sounds like a lot, but remember, this you know, indicy is so high, it's only a 0.79% loss. Our close was 52,766. NASDAQ gave up 271, 1.03% to close at 26,099, and the SP lower by 55 points or 0.71% to close at 7,631. So what was the problem? Well, the problem was the oil situation. And boy, did we have a heck of a run in oil prices. So get this out of the way. $4.45 increase on oil. 90 28 was our closing level per barrel. And so, you know, as we know, as I covered on the show yesterday, of course, we had missiles go back and forth between Iran and the US on Sunday. And then the same thing today happened, came out. we were still pretty early in the morning. indicating that we launched another attack. the then the power the president came out on two social, said the U.S. was conducting a quote, large and powerful strikes against Iranian targets near the Strait of Hormuz in retaliation for what Iran did, firing the missiles over the weekend against Jordan. He also warned that any Iranian retaliation would be met with strikes at a quote much harder and higher level, and suggests that even larger attacks remain an option. Iran issued re threats of retaliation of its own. Axios reported that Baric Ravid quoting the IRGC, the Iranian Republican Guard, as saying, quote, a severe punishment awaits the aggressors. The United States will regret its latest attacks. So that's all we needed to hear, right, Dwight? And and the bond market went crazy. It's the oil prices went crazy, and then the stock market went crazy on the downside. you know, we got this situation. You know, we're the boys and I were chatting off air, and I you know, as I mentioned on the show yesterday, pretty interesting. You know, if we look at it, as I covered, I I if I remember correctly, I think I said For the month of August, the tenure bond yield was only down three basis points for the entire month, right after all this volatility. So this is kind of like the stock market. We'll have obviously some good days, we'll have some bad days in the bond market. But Duane, I want to jump right to you. we had a four basis point increase on the tenure today, a four point eight percent yield. that should be, if my math serves me correctly, I think we're we're either at or slightly above a 25 a high that we have not seen since I think it was January of 2025. Man, what is going on with the bond traders? What's going on with the mortgage side of things with all this this you know this news and and and and real quickly before you answer, and let's think about this too, guys. The the bond market has been relatively immune to the headlines regarding Iran. It feels different this time. I don't know why, but Dwight Millard: Mm-hmm, mm-hmm. Jon G. Sanchez: I think because you know, we've had the Treasury trying to, you know, play these games of buying bonds to buy to bring yields down. Well, that's not working too well. as the street you know, criticized the Treasury Secretary, saying it's not gonna work and sure enough it's not gonna work. But do I you know, this time, like I said, it just feels a little bit different. Do you agree? Dwight Millard: Absolutely, John. And and I and you know, I thought once that, you know, that deal that was put together between Venezuela would calm it a little bit, but but you're right, it's all about oil. And now it's about the next rate increase. You know, that that's still just that's still just the biggest nuisance right now. Yeah, right, right. Jon G. Sanchez: Yeah, yeah. yeah, absolutely. Well, the oil relates to the to the inflation side, right? That's we're we're we're right back to the fundamentals. Oil prices go up, inflation goes up, inflation goes up, Fed's gonna raise rates. I mean, we're we're now this morning we're over a sixty percent probability for a October interest or excuse me, September Oct interest rate increase. And now they're starting to talk probabilities of a December quarter percent increase. Dwight Millard: Right, right. Right. And and all those variables, John, just keep putting additional pressure. I mean, you are one basis point shy of a six point nine on a thirty year fixed. I mean, you know, considering we were five n Jon G. Sanchez: Yeah. Yeah, one bad day, you're right at seven percent. Dwight Millard: Yeah, and we were at five nine nine, right, right the you know, the Thursday before, you know, we s you know, had the conflict in Iran, you know, Jon G. Sanchez: Yeah. Dwight Millard: and here we are almost we're ninety basis points higher. Jon G. Sanchez: Almost wow, almost one percent. I didn't realize that. Almost one percent higher. What what what are your Yeah, it has. there's no doubt. What what what are your Dwight Millard: It's just it's just pushing the affordability out further and further. Yeah, yeah. And it's been bumpy, right? It's been really bumpy. It's been super turbulent. Jon G. Sanchez: clients saying right now, Dwight? I I you know, I mean, we we're just we're not getting any reprieve, right? We're either holding steady on the thirty year mortgage or it's bumping up. Are people are what are they saying? I mean, you hear it every day. Dwight Millard: Well, it it's interesting, John. I've got a client right now that closed on a loan at the worst time when we were in the sevens and he closed at seven and a half. He's even afraid of refinancing right now. I mean, there's just not enough relief. Can you I mean, Jon G. Sanchez: No kidding. Yeah. Dwight Millard: you're in the your mid sevens and and now it's yeah, yeah, you know, so so Jon G. Sanchez: Almost seven. Dwight Millard: I yeah, all all the all the people that were you know, and again, I don't wanna be a doomsdayer. You know, we just try to bring the facts and Jon G. Sanchez: No, facts are facts. Dwight Millard: And the fac you know, and and people just are not convinced right now that this is the time to to to embark on a new mortgage, whether it's a refinance or purchase. And it's super hard, it's life that's making those decisions. Jon G. Sanchez: I I'm I'm I don't know about you. I don't know about you guys, but but I'm sensing and I'm I'm hearing from people and all different businesses and things, things are slowing down a little bit, Corey. They're starting to see the consumer, I don't know if it's the consumer just getting tired. you know, we always get this way towards the the this time of year, of course. It's been a long year, but it just sensing that the consumer's just kind of buckling down. And and I think, you know, when we get to the real estate report, it it almost shows that people just aren't moving right now. But are you are you hearing anything, Corey on the real estate side? Cory: Absolutely. I mean, not just the real estate side, just kind of normal stuff. I I had a conversation right before we jumped on the show with a friend of mine who's in a business and they run all kinds of car washes, RV rentals, like that kind of businesses. And he's they're seeing a big slowdown, which is kind Jon G. Sanchez: Are they? Cory: of dis disposable cash type of businesses, if you will. and so Jon G. Sanchez: Right. Right. Cory: I think you know, we've been saying it for a while. To me, people are are getting squeezed, they've been getting squeezed. All you hear about is AI and billions and billions of dollars and none of it has anything to do with the people walking on the road. Do you know what I mean? And so it Jon G. Sanchez: Yeah. That's a great point. That's a great point. It it's a very Dwight Millard: All right. Jon G. Sanchez: minute, yeah, very minute portion of the population that that is benefiting, you know, income Cory: Correct. Jon G. Sanchez: wise. you know, maybe they're making it in the stock market portfolio, but yeah, their incomes are not rising as as we have seen before. Cory: Correct. Jon G. Sanchez: and you know what's gonna be a big test and and it will happen. I I I won't say when, but it will happen when we see the stock market go through a correction phase. And then when I think you will really see. Obviously the consumer pullback at that point because Cory: Yeah. Jon G. Sanchez: that's the only thing right now. obviously Dwight Millard: Yeah. Jon G. Sanchez: real estate prices are holding steady, but it's not like they can go cash in on that or their stock portfolio, they can press a button and have liquidity immediately. But if they start to see you know, if we go through a five or 10% correction, I I think it's gonna be a different story. I think you're definitely gonna see the consumer. And then the bright side I've been thinking about, guys. I want to go over with you and then we'll go to break. I want you to think about this. The bright side is if we did, and I hate saying a bright side of a correction, but if we did have that. I think it will really garner the attention of I'll call it the Fed, of the Treasury, and of the Trump administration to do something to help the consumer. because Dwight Millard: All right. Jon G. Sanchez: you know, Dwight, you you called this right from the beginning of the year. Watch the midterm elections. There's going to be some a lot of programs and things announced. And obviously Dwight Millard: Yeah. Jon G. Sanchez: we're getting very close to that time period. So we'll see what happens. But but yeah, the consumer, yeah, they're feeling it. They're feeling it. So thanks, Corey. I appreciate Dwight Millard: I think it's Jon G. Sanchez: you backing me up on that. That was just kind of going off a gut feeling there. All right, boys, let's go ahead take our first break. And when we come back, we'll hit some of the movers and shakers and then get into our Reno report for the month of August. So where are the sellers is what we've titled today's show. Dwight Millard of OnQ Home Loans. All right. Once again, bit of a tough session today as oil prices rose four dollars and forty-five cents. bond yield, again, the 10-year up four basis points at 480. the market, well, we finished down 419 on the Dow. The NASDAQ lost 271, a 1.03% pullback, and the SP giving up 55 points or 0.71%. All right, Corey, I think we have you back now. Anything else you wanted to add, Corey, in regards to how you're hearing except can you just repeat which 'cause you were kind of breaking up. Can you just repeat a little bit about what you were saying about your your friend that has multiple businesses and they're seeing the slowdown across the board? Cory Edge: Yeah, just and they're all kind of service businesses, businesses that people will spend disposable income on, if you will. and he said they're seeing the slowdown. And usually and I to me that's always a good gauge of like how many people are washing their cars, how many people are grooming their dogs, how many people are, Jon G. Sanchez: Right. Cory Edge: you know, doing those things that you don't really have to do. And it's not a huge slowdown, so it could still be seasonal. Jon G. Sanchez: Right, right. Cory Edge: but it's still, you know, an extra expense. And the other thing I don't understand I guess we'll see what happens is you could raise the rates all you want, but that's not gonna bring oil down. It's gonna bring might bring consumption Dwight Millard: Yeah. Yeah. Cory Edge: down, which is gonna stall the economy, but yeah. Jon G. Sanchez: Right, right. Well, you you you bring up a great point, Corey. And and I think that's a point we need to emphasize with everyone is oil is the kingpin right now because it's not just oil and you know, in in days in years past, I should say, not days, but in years past, you guys know this, you've been around as long as I have, oil prices rose. The first thought that goes through an investor's mind, a trader's mind, etc. is okay, oil prices go up, the consumer's gonna have less discretionary money in their pocket, to you know buy other things in the economy. So therefore we should see an economic slowdown. Again, because of AI, thank goodness we have AI because it is it is it is the the buoyancy of the economy right now, right? But this time, again, it's a little bit different because it's we're not hearing that at all from any analyst. What what what we see, what we hear, what we're dealing with managing portfolios is really just the opposite, which is oil prices go up. Now, what's going to be the impact on inflation? That's all oil. It's oil equals inflation. Now that's all the street cares about. So this is what I keep saying. If you, you know, if you notice, and I was thinking about this before the show, guys. If if you think back, we've been in this conflict now for seven months, if you can believe that already. But if you think back when the stock market starts getting a little squirrely, and it's way too soon to say if we're getting, you know, Dwight Millard: Cool. Jon G. Sanchez: going through another one of those phases right now, what happens? The Trump administration announces something. Right. Something, hey, we've got a new ceasefire. Hey, we got this. Hey, we got that. To kind of calm everybody down and kind of get things back to basics. So I'm curious to see with this this run up after we've had today, if we get another day of run-ups, especially if we, you know, get close to that hundred dollar mark. Are we going to hear something quote positive about the Trump administration and so on and so forth? Cory Edge: I I just don't know what you could say that's positive. I mean not positive, but what are you going to say to bring the price down, right? Like I ran Jon G. Sanchez: it's simple. I disagree. I I think it's simple. Cory Edge: But what what it what do they do? Cut the tax or what do they do? Jon G. Sanchez: No, no, no, no, no. No, because it would be something positive with Iran, right? Iran's the problem, right? So all he has to do, yeah, that's what I meant. I'm sorry. all he has to do is say something along the lines of hey, we're again, Iran came out today. I didn't mention this. Iran came out today, and now they're going, hey, you remember that memoranda of understanding back in June that lasted a couple days? United States, if if you go back to that memorandum of understanding, we'll go back to the memorandum of understanding, we'll have a ceasefire. So that's the first time I've seen that happen where Iran comes out and says, Hey, let's go back to, you know, what we had. So maybe they're starting to go on the retreat side a little bit. I don't know. but but to your point, Corey, what I meant by that, and I'm sorry to interrupt you when I said that, is there's a million things that Trump can say. And and no matter how many times we've been told there's a ceasefire by him, by Besent, by everybody, the market's still will grasp on anything positive coming out of his mouth. And, you know, this four dollar gain in oil today, we could see that go go down in one day if if if the news Cory Edge: Sure. Jon G. Sanchez: is is perceived as positive enough. Cory Edge: Yeah, no, I totally agree. I do I think Iran's playing the long game, like they're playing a cat and mouse, but Jon G. Sanchez: Very much. Cory Edge: I do agree with you that that they could they could jawbone and then drop a big well, you know, lack of a bad term, but drop a big bomb right before the election and you know. Jon G. Sanchez: Yeah, yeah. Yeah, no, you you know, that's an interesting point. Dwight Millard: Yeah. Jon G. Sanchez: that's a very interesting point. Yeah, they may be just kind of playing cat and mouse right now until we get closer to the election and and yeah, 'cause that would be that would be a tough one for for the politicians, to say the very least on the midterm side of things. Dwight Millard: Well d John, did I read it right today that Russia announced they're supporting Iran? I mean, I don't I don't know the geopolitical but I mean, Jon G. Sanchez: Yeah, yeah. Dwight Millard: you wait long enough, then you get something like that, which doesn't help the help it at all, but Jon G. Sanchez: Well well well what I don't understand too, Dwight, to your point, is you know, these economic sanctions that were announced last week, right? That was that was Trump's new new plan, right? We're gonna we're gonna really squeeze them on the economic sanctions. But guess what? They they didn't do anything with China. China buys Cory Edge: Mm-hmm. Jon G. Sanchez: ninety percent of their oil from Iran. So that's the that's the fine line that Trump has to play on this whole thing is okay, we don't wanna, you know what, China, we don't wanna upset them. But at the same time, can you really put severe sanctions on you know, Iran when their largest customer is still going, Hey, we'll take all the oil we can get from you. That's that's really one of the big dilemmas I think that we're facing right now, Corey. Cory Edge: Yeah. Yeah. No, I had China's playing it smart. They sit back, they keep their mouth shut, they watch it all unfold and they will Yeah, it's a very it it he has put himself in a very tough position and it'll Jon G. Sanchez: Indeed. Cory Edge: be interesting to see how this whole thing rectifies Jon G. Sanchez: Yep. Cory Edge: itself. Jon G. Sanchez: Yep. Absolutely. All right. Dwight Millard: Well y you know, and he's run and Johnny's running out of time too. He's running out of time. Mm-hmm. Jon G. Sanchez: Yeah, yeah. It's yeah. Well the poll numbers are showing the the consumer is getting very frustrated with it for all the reasons that we said and and so on so forth. The consumer is squeezed right now. There is no doubt about it. And like I said, I'll repeat it one more time. If it were not for AI right now, I send I in my heart of hearts believe that we would be sitting at a five to ten percent correction right now. I really do. Cory Edge: Absolutely. Jon G. Sanchez: So good. Glad you agreed to do one, Corey, too. All right, fellas, when we come back, Corey, it's gonna be all about you. We're gonna get into August Northern Nevada real estate data. You don't want to miss this with Corey and Dwight. Welcome back to the John Sanchez show on New Stock 780 KOH with Corey Edge Veg Reality Dwight Millard of OnQ Home Loans. All right, once again, before we get to our real estate data, 419 decline on the Dow Jones Industrial Average, NASDAQ lost two seventy one and the SP down fifty-four. Oil prices spiked four dollars and forty-five cents to ninety twenty-eight a barrel, and a four basis point increase on the 10 year at a yield close of four point eight percent. Dwight, I'm proud of you. You're you're still smiling after after The the the tough twenty twenty six is the way the you know the market has been on these yields and you know, so on and so forth. I'm proud of you, man. I I think I think I was gonna say, I think Corey, I was gonna say Dwight Millard: Well, you know, Corey's teaching me, right? I can't change it, so I just gotta go with it. Jon G. Sanchez: I think I think you're starting to rub off on him and you know, not nothing up the reason we're saying that c nothing upsets Corey. He is just good, bad, or indifferent, just right down the middle. It's what we love about Corey. And Dwight and I are like we've always said, more the emotional ones. But I think we're both mellowing. I my wife told me the or actually my son told me the other day, he's like, I was I was helping landscape his backyard and things were just going phenomenal. Just got a wild hair. It's like, let's clean up this backyard and I'm on my skid stair and grading and everything. Well, you know, this ranch was settled in 1864. Galvanized water pipe going from the well house to his house, and the backyard's in between the well house and his house. And I'm grading, everything's going fine, making all kinds of progress. And I scraped down two inches, and some farmer a million years ago that when they settled this place. Put a hose spigot, Corey, literally two inches below the surface. So guess what John did? John hits the hose spigot, this old rusty, galvanized thing. Water goes gushing everywhere. Cory Edge: no. Jon G. Sanchez: And luckily his wife was in town and I sent her Day's hardware to get a get a metal cap, a galvanized cap to put on there. And we tried to put it on, and we we at least we were able to turn the water on. And Plummer came today, but Plummer's like, this is like the oldest system in the world, you know. But you know, you just and and my son, I'm down there in the ditch and I'm trying to fix this. He goes, you know, you've just mellowed in your old age. You would have thrown a fit had you done this, you know, five, ten years ago. I Yeah, that's what happens the older you get. You just it's like, yeah, you know what? It is what it is, as long as our water works. Cory Edge: He has slowed down. Yeah, exactly. Like everything can be fixed and it's part of the experience, Jon G. Sanchez: Yeah, yeah. That's that's that's right. That's right. Part of the experience. So you got it. All right. Let's get to our real estate data, Mr. Edge. Here we go. six hundred and twenty-five thousand dollar median price for the month of August. How'd we do on a month over month? How do we do year over year? Start with that. Cory Edge: Month over month from July to August down less than 1 % .7. I can't remember. I think we hit the high in June. it 642, 643 somewhere in there? Jon G. Sanchez: Sounds about right. Yeah. Cory Edge: And we've been coming down ever since. We're up year over year, August 25 to 26, almost 7%, 6.8. But Jon G. Sanchez: Pretty amazing. Pretty amazing. Cory Edge: I didn't send you guys the whole pricing chart. I'll do it next month. But that 4th of July peak pricing. seems to have held this year again. Jon G. Sanchez: Did it really. Once again, your prediction. Yep. Yep. Cory Edge: And it should be downward from here. Just seasonality, everything else. Again, same thing you always say, John, like you can't, it's too early to tell if this is a start of something even worse. Nothing in these numbers says it is, but you just, Jon G. Sanchez: Correct. Cory Edge: you never know until you get there. Jon G. Sanchez: Right, right, exactly. Okay, but you know, let's put it in perspective, Corey, right? One as the Fed says, one month does not begin a trend. 'cause we're we're remember we were giddy when we went through July's numbers, right? June to July. Those numbers were great. but you know, looking at the year over year, yeah, yeah, up almost seven percent. I mean, think about that. No matter what price your house is, a seven percent appreciation in a year ain't too shabby. Cory Edge: It is and it's still a very interesting market, still got a lot of high end stuff moving. I think it's still 25 to 30 % cash. Some interesting stats and I started looking at these. So in August of 2019, so the month of August, but in 2019, the median was 399,000. There were 600 sales, 597 sales. But then I started looking at the averages. the... The median in 2019 for August was 399, but the average was 467. Jon G. Sanchez: Hmm. Cory Edge: Right, so you got a $68,000 spread. For Jon G. Sanchez: Yeah, yeah. Yeah. Cory Edge: this August that we just got out of, the median 625, guess what the average is? 798. Jon G. Sanchez: Wow. No kidding. So that goes back Cory Edge: which shows you that there's a huge, big. Jon G. Sanchez: to what you said last month when we went over the report that these numbers are a little bit skewed. Don't get don't get upset at your real estate agent when your house sells, or if you're thinking your house is going to sell for this median of $625. You were saying last month, Corey, and correct me if I'm wrong. There's some high-end homes selling, right? Some high priced homes, I should say, selling. And that's skewing these this median price a bit. Cory Edge: Yeah, it won't skew the meeting as much just because the meeting is just in the middle, know, it's right in between, so whatever. Correct. It does kind of pull the whole group up, but that average, I mean, Jon G. Sanchez: Right. Yeah, but if your ceiling's higher, right? Yeah. Right. It's like a magnet. That's the average, yeah. Dwight Millard: Mm-hmm. Cory Edge: to have $172,000 difference now versus six years ago when it was only 67, I mean, it just shows you the amount of the high end, the differences there. Dwight Millard: But John, you Jon G. Sanchez: Do you Dwight Millard: we've been doing some research with Corey and what's interesting is somebody bought a house maybe a year, year and a half ago, and they're trying to sell it for 30% higher than the 6.7 that Corey just demonstrated, right? Jon G. Sanchez: Mm-hmm. Dwight Millard: I mean, that it's it's so you just sit there and go, how do how do they justify if they bought it at market when they bought it and now it's 30, 20, 25 higher than the 6.7 that Corey just talked about? You know. Jon G. Sanchez: No, that's true. That's true. Right. Yeah, I think that's about the line. Cory Edge: that there is no justification. And those are the ones that'll sit on the market. And unfortunately, I can't remember if I mentioned this on the show last week or if I was telling somebody else's story, but I had a potential listing point. I think I did say it on the show, a potential listing appointment. And unfortunately, this person, they're not selling because they're overpriced, but they're already priced lower than what they bought it for a year and half previous. Jon G. Sanchez: Interesting. Cory Edge: And they still need to cut the price to be competitive with the market. So this is a little neighborhood out in Spark. So I looked around that specific neighborhood out of curiosity, because it's newer. 50 % of those listings are asking prices less than what the people had paid for them. Doesn't mean they're short sales. It's Jon G. Sanchez: Wow. Not a good sign there. Yeah. Cory Edge: stagnant in the market, right? nothing has really happened. Little ebbs and flows over the last couple of years. Jon G. Sanchez: That th that's gotta be a shock to those people, Corey. That's gotta be a shock because how long has it been since we've dealt with that, right? A ha a house worth Cory Edge: Exactly. Jon G. Sanchez: less than when you bought it a couple of years ago. Cory Edge: And it depends, right? So if you buy on the 4th of July, clearly you're buying at the peak of that year's market. Whereas if you buy on, I don't know, Christmas Eve, you're Jon G. Sanchez: Mm-hmm. Cory Edge: probably like, no, no, I got a good deal in, you know, 2022 because of the time of year. Jon G. Sanchez: Right. Right. Cory Edge: Like for instance, and again, I call off on these changes, but I got a client meeting on Thursday and the gentleman wants to talk about different prices and this and that. And I'm gonna tell him, hey, it's September. We should be looking at houses in December, January. There's no reason to mess with this middle market right now because it's just going to keep going down. Why Jon G. Sanchez: Got it. Right. Cory Edge: deal with it? Jon G. Sanchez: Right. Right. Unless it's a family situation where he has to buy something, right? So that'd be the it is. okay. So no, nothing there. Okay. All math. There you go. Cory Edge: Yeah, and this is pure investment. So it's all dollars. Yep. We'll just wait the market out. Yep. Jon G. Sanchez: There you go. All right. We come back. We're going to get into our closed sales, days to contract, new listing, so on and so forth. We got an interesting situation on the active inventory we want to share with you as well. Hustle when we come back. We're going to be short on time, as always. Welcome back to John Sanchez Show on Newstalk seven eighty KOH. Such a pleasure to be back with the boys. Mr. Millard, can we get your phone number, sir? Dwight Millard: Yes, sir. Two four zero two zero two two. Jon G. Sanchez: Thank you, sir. Mr. Edge. Cory Edge: 673-6700. Jon G. Sanchez: Excellent. Thank you, Corey. All right. We're just getting warmed up, but we got to hustle here on our l real estate report for the month of August. So once again, median price, as Corey said, six hundred and twenty-five thousand, down seven tenths of a percent month over month, and up six point eight year over year. Corey, I'm gonna let you drive the bus here, since we're tight on time. Where where you wanna go as far as the rest of the data, what you think is important for the audience. Cory Edge: Well, let's just say every data point in this report is bad if you're a seller, they're seasonality. So closed sales, for instance, 361 closed sales for the month of August, Jon G. Sanchez: August. Cory Edge: that's down 22 % year, month over month. So the price only went down 7 tenths, but the closed sales went down 22%. So you had some big numbers in there that were holding those sales prices up. Meeting days to contracts are from the day I list to the day that I go to my contract 26 days, that's up 24%. Right, so things are taking longer, there's less close sales. Jon G. Sanchez: Do you think because of more negotiations in the interim? Cory Edge: I earn or no negotiations, just crickets, right? Like things just sitting on the market. Rates go Jon G. Sanchez: Mm. Interesting. Okay. Okay. Cory Edge: up, buyers hold back. the other ones that down to the bottom three new listings. So 410 new listings for the month. That's down almost 24.4 % month over month. And so now you're going to see some of these sellers go into hibernation a because of the time of year, but B because they're seeing their neighbors not get multiple bids. So now they wanna pull back and say, wait a minute, maybe I'll wait till spring, but it might be better in spring, it might be much worse, nobody ever knows. Active inventory. Jon G. Sanchez: Sure. And down and the and let's go one I want to just throw this in Corey on the new listings. You said down twenty four point four month over month, but down seven point four year over year. Yep. Okay. Cory Edge: Yeah, markets changing a little bit. Active inventory down 8.1, that's just because you don't have the new listings clearly. But month supply up 18%. So more houses sitting on the market, not getting bought up. Again, I don't think it's anything drastic at this point because if you've been doing this for a while in this area, you knew it was coming after the 4th of July, and then we'll just see where it goes from here. Jon G. Sanchez: Right. Yeah, that month's month supply of inventory at two point four, up eighteen point two month over month, eighteen point two percent, year over year, down eighteen point one. Cory Edge: Down, yeah. Jon G. Sanchez: Yeah, so Dwight Millard: Yeah. Jon G. Sanchez: really contrasting. So Corey, a lot of data points as always. Take your expertise and then Dwight, I'm gonna throw the same question over to you. Your expertise, what is all this data telling us? What is it telling us about the the local market at this point? Cory Edge: It tells me the buyers are a little bit nervous on interest rates. They're kind of getting sick of the high prices a little bit, but they have been, but you're still getting sales. So if you price it effectively, it will sell. If you plan on pricing it, overpricing it and bringing it down $500 every two weeks, you're just, you're killing everybody here. So well-priced homes, fair-priced homes will sell and overpriced ones will not. Jon G. Sanchez: Right. Dwight? Dwight Millard: Yeah, John, I don't think we're anywhere near a balanced marker, but this is at least a a a direction in the right way for some home buyers out there that have been looking and looking. The problem is is I think Corey's right. This could be worse in in the springtime. I again I'm forever an optimist, but you get two or three rate increases. I mean, what we're talking about today could be the best thing you could have had in the last Jon G. Sanchez: Right. Dwight Millard: six, eight, ten months. So I think just be realistic about your t expectations, your time frames and The sale prices, especially as a seller. So I mean it's Jon G. Sanchez: So Dwight l let's let's let's go down this path here. I always love to ask you this question. Where's that threshold right now, that pain threshold for the consumer when it comes to a mortgage rate? Is is like we've talked about years past, is it at that seven percent? Is that the line in the sand? Or Dwight Millard: No, I I think you've I think you've exceeded you're exceeding that line. I think I think ideally five and a half, five and three quarters, six is where everybody wants. And now we're going 90 basis points the other way. I I I just think this is going to be it. We always talk about it. It's so quick to go up and so hard to come down rates. Jon G. Sanchez: Sure, sure. Dwight Millard: This could be an extended pay. It's frustrating. And I talked to some of my friends out there. Everybody's feeling it. I mean, everybody's cutting back. Every, you know, we're back to that again. You know, and here we are, four and a half. Going on five years since, you know, March of twenty two. It's a tough one. Yeah. But Jon G. Sanchez: Yeah, amazing. Amazing. Do you do you see anything changing you know, as we discussed at the beginning of the show as far as the midterm elections? I mean, do you see anything changing, you know, in regards to the outcome there? Dwight Millard: I I don't I think if if you have a change in the House or the Senate, you're gonna just you're gonna get bogged down and stuff and Jon G. Sanchez: Yeah. Dwight Millard: you know, you're gonna start hearing maybe some wacky ideas that are gonna come out, whether they actually make it to fruition. But I I just don't know. I mean it's you know, this this this is a I we go over seven percent, John, on the thirty year average. that's gonna be a really tough thing for people to swallow again. Mm-hmm. Jon G. Sanchez: Right, right. Same thing to you, Corey. Wh where where do you see the threshold right now? Are we at it or Cory Edge: I think we're at it, but I do agree with Dwight. If you start pushing seven, seven and a quarter, that's gonna be tough. But a lot of people don't realize, Dwight and I've talked about on the show, the level of activity in the market, regardless of this number, is so condensed and down from where it should be. It's worse than the great financial crisis when you look at just activity in the market. Jon G. Sanchez: Explain that further. You you've said that a couple of weeks. Explain that further real quick. Cory Edge: So the number of transactions in the market, which affects realtors, lenders, appraisers, all the people that are involved there, the number of overall transactions is less than what it was during the great financial crisis. So the level of activity is less than that. Now the saving grace is the price is twice as high, but you can still only accommodate, you know, not as many people, because there's more people trying to get their piece of the little pie, if you will. Jon G. Sanchez: Yeah, amazing. Cory Edge: So it's a tough. Jon G. Sanchez: It is a tough one, no doubt about it. Well, I wish we had a more encouraging report, everybody, but facts are facts. That's why you tune into this show. We don't sugarcoat anything. Great job, Corey, great job, Dwight. As always, I will see all of you tomorrow again on the John Sanchez show. God bless, have a great afternoon. Dwight Millard: That's