REDDING AREA REAL ESTATE MARKET: YEAR IN REVIEW
INDUSTRY NEWS, SHASTA COUNTY, SHORT SALES, TIPS FOR BUYERS, TIPS FOR SELLERS
January 2nd, 2009
Now that 2008 is history, I can summarize local real estate market activity as reported by real estate agents to the Shasta MLS. Residential units sold slid 10% from 2007, 1931 for 2008 vs. 2144 in 2007. The number of distress sales, foreclosures and preforeclosures, increased significantly last year. According to the Shasta MLS, 176 homes sold during 2007 were designated as REO’s, or bank-owned properties, compared to 625 in 2008. That represents a 355% increase in the number of foreclosures sold from one year to the next.
Preforeclosure, or short sale listings sold in 2008 created a new statistic virtually non-existent in 2007. 121 homes listed as short sales, where the asking price is less than what is owed on the home, closed escrow in 2008 compared to only 1 in 2007. 433 homes listed in 2008 were attempting a short sale. Only about a quarter of sellers were successful navigating the short sale process to a closing. The balance have or will be foreclosed upon or, in rare instances, the owners will refinance/modify their loan(s) and keep their home off the auction block.
Land sales dropped by a larger percentage due to new construction slowing to a crawl. In 2007, 398 land parcels sold. Last year, that dropped back to 205, almost a 50% drop. Mobile home sales (in parks and on private land) fared better with 169 sold in 2008 vs. 183 in 2007.
On New Year’s Day, only 1493 homes were available on the Shasta MLS and 121 of those (8%) are REO’s. 11% of the active residential listings are designated as short sales, where any potential sale must be approved by the seller’s lender. Based on the success rate in 2008, only 1 out of 4 of these sales will ultimately make it to the closing table.
Thus far, the majority of the bail out money earmarked by the federal government to aid the housing industry seems to be directed to unfreeze credit for future home buyers but provide little help to those in foreclosure. The sales numbers in Shasta County appear to support this reality. Rumor has it that mortgage rates could sink to history making lows in hopes of getting first-time buyers into home ownership. Restoring consumer confidence and stemming the tide of foreclosures will be key to turning the housing industry around in 2009!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
