REDDING AREA HOME SALES INCREASE 19%
HOME LOANS, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS
November 14th, 2008
In October 2007, 144 homes sold. This year, that number increased to 178. The largest number of sales 
were in the $200,000-$250,000 bracket with 49 homes sold. Almost 90% of the homes sold were listed at $350,000 or less. The number of active home listings has dropped to 1663 and the number of homes pending sits at 331 today. These numbers are for all areas served by the Shasta MLS. The inventory drop is typical as we enter the holiday season.
Interest rates dropped slightly this week to a statewide average of 6.20% for a 30-year fixed rate loan. The 15-year fixed rate loan is 5.88%. Rates have been fluctuating between 5.75% to 6.5% during the past several weeks. Despite news to the contrary, banks do have money to loan!
However, homebuyers today have a higher bar to jump in order to get the best interest rates and terms. Yes, you must have a job or verifiable income, good credit and in most cases, money for a downpayment and closing costs. The higher your credit score, the lower the interest rate. Mortgage insurance costs increase in accordance with lower downpayments. FHA loans require the least amount down and have the most liberal underwriting guidelines. The cost of mortgage insurance for FHA loans is higher, in most cases, than that charged by conventional lenders.
First-time buyers should plan to spend at least $150,000-$200,000 to get a home in good condition in Redding, Shasta Lake or Anderson. The dollar can be stretched even further if Lake California is an area buyers will consider owning a home. Several newer homes in good condition can be purchased there for around $150,000.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
