Redding Real Estate Market Stats For March 2009
INDUSTRY NEWS, SHASTA COUNTY, SHORT SALES, TIPS FOR BUYERS, TIPS FOR SELLERS
April 21st, 2009
March sales numbers include good and bad news for the local real estate market. According to data gleaned from the Shasta Multiple Listing Service (MLS), 148 homes sold in March compared to 165 a year earlier, roughly a 10% decline in units sold. However, the number of active listings slid 22% from 1742 last year to 1361 today.
The total number of homes pending today on the Shasta MLS is 418. On April 21, 2008 356 homes were in escrow. The reason the number of homes sold in a given month is so much lower than the number of homes in escrow at a given point in time is due, in my opinion, to the vast number of short sales and to a lesser extent, new homes that are in long escrows during their construction period.
In fact, more than 100 homes currently in escrow are short sales, meaning the owner is trying to get the bank to forgive a portion of the loan so the buyer can purchase the home closer to market value. This process can take months to accomplish, depending on the lender. Surprisingly, I had a lender recently respond to a short sale offer in two weeks, almost unheard of in the short sale arena.
On the horizon, foreclosure activity is on the rise as government efforts to slow or stop the tide have expired. The potential spike in foreclosures could hamper a recovery in the near term for the local real estate market.
One other trend of note in the past several quarters is where the real estate sales activity is focused-the low end! In March, 86% of the sales were homes priced under $300,000. Only one home sold over $500,000 out of 214 homes for sale above the half million mark. If I am doing my math right, that means a home priced over the half million mark has a 0.5% chance of selling! Ouch!
At the other end of the spectrum, 55 homes sold under $150,000 or 34% of the 162 homes listed in that price bracket. Yes, there are many livable homes in our market area affordably priced for investors or entry-level buyers. This was not the case just a few short years ago. Low prices and low interest rates have combined to allow many buyers the opportunity to own a home with mortgage payments lower than rent, especially for those that can take advantage of the tax write-offs that home ownership provide.
Stay tuned for future developments!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
