Distresss Sales Increase in Redding/Shasta County
INDUSTRY NEWS, REAL ESTATE PRACTICE, SHASTA COUNTY, SHORT SALES, TIPS FOR BUYERS, TIPS FOR SELLERS
March 3rd, 2009
In 2008, about 1/3 of all sales could be classified as “distressed sales“. A check of today’s activity indicates this segment of real estate activity has increased to nearly half of all sales.
Today there are 1519 active home listings on the Shasta MLS. of those, 126 are classified as REO’s or bank owned and another 198 are short sales or pre-foreclosure properties. The accuracy of these numbers requires agents to properly designate the ownership and available terms when they input data to the MLS system. Occasionally agents do not identify their listings properly which can lead to errors. This could be called the “garbage in, garbage out” scenario.
Of the 304 homes marked as pending sales today, 85 were REO’s and 66 were short sales. A short sale is when the seller is “underwater” on their mortgage. They owe more than their asking price and are hoping the lender will agree to forgive the shortfall. These two categories of distress sales combined equal 49% of the pending home sales activity.
Closed home sales since the beginning of the year through today total 229 units. 98 were REO’s and 13 were short sales. Again, this number works out to 48% of sales activity being distressed properties.
This year is shaping up to be a good one for bargain hunters and first-time buyers. Interest rates remain low-about 5% for credit-worthy borrowers and prices are off by more than 30% from the peak. Bank repo’s are setting the market prices and property owners will need to be competitive if they hope to sell in today’s market.
A robust increase in sales in the large metro areas of the state may result in an increase in sales activity locally. Redding has traditionally relied on out of area buyers to fuel the local market, particularly for the higher priced new homes. Local buyers fall into two main groups: first-time buyers and investors.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKERR ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
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