CAR REPORTS DECEMBER SALES UP 84.9% AND PRICES DOWN 41.5%
INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS
January 31st, 2009
The California Association of Realtors (CAR) reported a strong increase in the number of homes sold year-to-year for December 2008. Reasons cited for the dramatic increase were higher loan limits for high-cost areas, lower prices and lower interest rates. More than 544,000 homes closed escrow in December alone.
The median price statewide has dropped to $281,100 which represents a 41.5% decline from December 2007 when the median price was $480,820. Redding’s median price was reportedly $190,000 as per the local newspaper. The median price for Redding hovered around $300,000 at the peak of the market in fall of 2005.
Overall, the median price dropped 38% in 2008 in California. Home prices are likely to continue to fall until distressed properties work their way through the system, according to CAR economist Leslie Appleton-Young.
The good news is the lower prices “have brought the cost of housing more in line with household income” she said. The other positive news is the huge drop in unsold inventory. Currently, California has a 5.6 months supply compared to 13.4 months a year ago.
Interest rates have declined from 6.1% in December 2007 to 5.29% in December 2008 for a 30-year fixed rate loan. One other interesting factoid is 5 of 338 statistical areas in California actually saw a median price increase compared to a year ago. Who’d a thunk!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
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