1st Quarter Redding Real Estate Stats
HOME LOANS, INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS
April 6th, 2009
Finally there is some positive news about the local real estate market after many months of sluggish sales. Today, there are 1538 homes for sale in the area served by the Shasta MLS. Pending sales jumped from an anemic 257 in early January to nearly 400 today. Agents I have bumped into during Open Houses and networking meetings agree there has been a noticeable uptick in activity over the past two weeks. The phones are ringing, traffic at Open Houses is heavy and multiple offers on lower priced homes are common.
A local appraiser has provided some stats based on his own research into local market data. For Redding, 197 homes closed in the first quarter. The average sales price was $233,501. The average cost per square foot has declined to $136. To get a real rough value of your home, multiply the square footage by 136. This cost/foot is down from $148 in the last quarter of 2008.
Only 4 homes have closed escrow over the $500,000 price point since January 1. Two were in the Gold Hills area, one off Bear Mountain Road and one in Victoria Highlands in West Redding. Sales nearly doubled in March compared to January. Expect better sales numbers in the 2nd quarter as the impact of lower home prices and historic low interest rates shows in future stats.
Home values will continue to decline until the market absorbs most of the distressed sale properties. Currently, bank repo’s make up about 10% of listings but nearly half of the pending sales. Banks are pricing their assets aggressively, offering financial incentives to buyers, and in some instances, bonuses to real estate agents that procure a buyer.
Sellers needing to sell are beginning to get the message that they must price their homes competitively with the foreclosed homes to have a chance. Many have made the poor decision of pricing their homes at market value despite the price erosion that has prevailed for the last 2 years. Smart sellers are looking at comparable sales data and setting their asking price just below that to increase chances of a sale. I call it getting under the market rather than chasing it down!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
