Monterey County Real Estate Statistics October 27-November 3, 2017

New Listing (62)

List Price Increased (2)

List Price Decreased (49)

Transaction Fell Through (10)

Listing Back On Market (8)

Contingent (59)

Pending (39)

Changed to Sold (66)

Listing Expired (21)

Listing Canceled (10)

October Jobs Report 

 "Prospective homebuyers who are ready to make a move should act quickly, as rates will likely rise before the year’s end" 

The U.S. Bureau of Labor Statistics released its October jobs report today

  •  Increase of 261,000 jobs. 
  • The unemployment rate fell to 4.1%, decreasing the number of unemployed persons by 281,000 to 6.5 million in the US.

While the jobs figure falls short of the expected target of 313,000, it’s difficult to to draw any real conclusions from this data due to the disruption caused by this year’s tragic hurricane season. Hourly earnings were also affected by the hurricanes and grew only 2.4% in October.

GOOD NEWS: The underemployment rate or “real unemployment rate” dropped to 7.9%, the lowest since December 2016. Investors appear to be taking the report with a grain of salt, as the interest rate markets are mostly unchanged today.

The jobs report comes a day after President Trump nominated Jerome Powell to succeed Janet Yellen as the next chairman of the Federal Open Market Committee. The nomination has not seemed to cause much disruption in interest rates.   Jerome Powell’s Fed will likely be very similar in character and temperament to Yellen’s Fed, which has been good for interest rates.

The nomination has not changed the strong probability of a December rate hike. This appears to be fully priced into the financial markets, with Fed futures pointing to an 88% probability of a hike.

  • It’s important to note that 30-year mortgage rates aren’t always correlated to the Fed Feds rate. 
  • We have been seeing both going in opposite directions lately. 
  • The average 30-year fixed rate mortgage at 3.94%  homebuyers can still take advantage of rates that are near historical lows. 
  • But prospective homebuyers who are ready to make a move should act quickly, as rates will likely rise before the year’s end.


Things To Know Before Searching For A Home On Zillow

Zillow is a great place to start your home search.  In the recent past, Zillow has become more accurate due to the integration with our MLS.  I did a study today to determine just how accurate Zillow is.  I am pleased to report that I did a search on Zillow for 3 bed homes $400,000 and up in Monterey and I got a total of 71 homes for sale.  I did the same search on our MLS and the number was 66 active listings.  This is due to the lag time between what the MLS reports to Zillow. I can put you ahead of the competition and set up a search for you directly from the MLS so that you will receive all of the newest information as soon as it hits the market with no lag time.  One of the reasons that Zillow has unrolled the new My Agent Program.  When you work side by side with a real estate professional, we have access to information that is not available to the public.  We also know about properties that are soon to be available, and we can search for homes in areas and neighborhoods you are interested in saving you a lot of time, energy and frustration.