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Real Estate NewsletterPublished October 6, 2025
April 2023 Real Estate News
{original post 4/27/2023}Hello! Thanks for tuning in to this month’s newsletter. It’s our goal to bring valuable real estate content and local updates to you, so we hope you enjoy it! ☺️🏡💛 In this e-newsletter, we will dig deep into down payment assistance programs and mortgage rates, provide insight on upsizing and downsizing strategies, and share exciting news about our new partnership with Dream Makers! The Schwaegerle Team strives to educate and empower all people on the ins and outs of real estate, so thank you for tuning in and following the team on social media! |
| Down Payment Assistance Program Throughout our country’s history, the government has believed in and promoted land ownership. A great example of this is the Homestead Act of 1862, which was signed into law by Abraham Lincoln. This act granted a 160-acre tract of land to brave pioneers who settled the land, improved it, and lived on it for five years. It was a way to incentivize people to move out west and establish communities. Owning land is the American Dream, and it is deeply rooted in our history. So, when a new loan program comes out incentivizing home ownership, we shouldn’t be surprised. If the only hurdle in your way from buying your first home is having a down payment, this is for you! There are down payment assistance programs for first time home buyers available! You heard that right. CalHFA offers loan options for down payment and closing cost assistance. How do these loans work? The government is giving a grant to help cover the down payment and closing costs, which is a loan deferment. That means a buyer doesn’t have to make a payment on that loan until the house is sold, refinanced, or paid in full. Recently, the government dropped a 20% down payment assistance program. Yes, a full twenty percent! They gave buyers that full down payment, which meant that buyers didn’t have to pay Private Mortgage Insurance (PMI), and their monthly mortgage payment was much smaller than if they had put a minimum of 3.5% down. As expected, this particular loan product was so desirable that it actually ran out of funds in 10 days. There was a limited pool of about $300 million that the state set aside for this program. Given the ~$800,000 median sales price of a home in California, only 2,000 or so people were actually able to get these funds locked in, which is why they went so quickly! Fortunately, the funds will replenish once a buyer sells or refinances, so we will start to see the funds become available again in the future. When loan programs like this come out, speed is essential. That was also the case with the race to acquire land during the Homestead Act back in the 1800s (see this scene from the movie Far and Away to get a feel for what that was like). Another thought is this: think about how the government is constantly increasing the budget for certain line items. They are likely to increase the funds allocated to this pool since it was such a huge hit! All of this means that NOW is the time to get into a position to take advantage of these programs, so you are ready when the next opportunity comes! If this program is something you’d be interested in exploring, please connect with us as we have some great lender partners we work with who can provide these loans to you. |
| Buyers Re-entering the Market Mortgage rates have been slightly declining over the last few weeks. According to the Mortgage Bankers Association’s Market Composite Index, mortgage application volume improved for the fourth consecutive week. At the end of March, the volume increased by 2.9% on a seasonally adjusted basis and 3.0% unadjusted. As of March 30, the 30-year fixed-rate mortgage averaged 6.32%, the lowest it's been in the previous six weeks. What does this mean for buyers? With home price growth slowing and rates declining in recent weeks, buyers’ purchasing power should continue to improve, which will likely bring more buyers back into the market. |
| Upsizing and Downsizing Thinking about upsizing or downsizing? You are not alone! We have had a number of people looking to downsize, upsize, or buy and sell simultaneously reach out to us lately. Because of this, we actually hosted a seminar at our office earlier this month detailing the strategies to use to move from your current house to your new home. We’ve outlined them for you below: 1. Buy First, Sell Second: Must be able to financially qualify for a new home purchase while keeping the original house 2. Buy First, Turn Current House into a Rental: Lender may need to see a lease 3. Sell and Buy Simultaneously: Sell current house and buy a new home the same day 4. Sell First, Buy Second, and short lease-back on current house: Great option but requires the right buyer 5. Sell First, Buy Second, and find temporary housing: Live with family and friends or secure a short-term lease before buying a new home Each of these options has varying degrees of difficulty. Options #1 and #2 involve buying before selling. This could make the move easier for you, but in order to do this, you have to qualify for the payments on two homes. This method can work great if you have enough income or assets to qualify to purchase without selling. Another iteration of this is using the equity from your current home as the down payment or cash to purchase your next home. An example of this would be to use a line of credit, do a cash out refinance, or a bridge loan to tap into your home equity before selling. This can be more convenient and make the move a bit easier for you. Option #3 may sound nice, but this option is actually the most costly and difficult to execute. This is because you often have to overpay to get your contingent offer accepted and undersell or grant concessions when selling since you are at the mercy of the buyer to close on time to get your replacement property. If you are thinking about making the move to downsize, upsize, or buy a new home, then try considering some of these options. If you want to go through each option and see which one makes the most sense for you, reach out to us and we can set up a time to chat more!  |
New Partnership with Dream Makers We are so excited to share that we are partnering with Dream Makers, an incredible non-profit organization that helps bring light and joy to terminally ill adults who have a life expectancy of a year or less by making their dreams come true. Because we believe in this organization and the mission so much, we have committed to donating 2.5% of every transaction to Dream Makers. 100% of every donation goes straight to making dreams come true. Please join us in supporting this amazing local non-profit. |
SLO County Active Listings  As of March, there were 451 Active Listings in San Luis Obispo County. This number improved by almost 10% from February, and it is expected to continue rising. |
| Coming Soon Listings! 3 bed/2 bath condo in Atascadero for $459,000. The perfect starter home! 3 bed/2.5 bath home in Pismo Beach with amazing views for $1,050,000. A must see! |
| Let's Be Social Thanks so much for reading our newsletter this month! We want to hear from you! Please let us know how we can support you on your real estate journey. Whether you just purchased a new home, want to explore home-buying options, are curious about what your property might be worth, or just want to know more about the market, please reach out! @theschwaegerleteam @closeinslo @your.realtor.slo You can also follow us on YouTube and Facebook for more updates throughout the month. |
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