Redding Housing Prices Holding Steady
INDUSTRY NEWS
June 10th, 2009
The average cost per square foot for a home in Redding remains stuck at $136 for the April/May time period according to a local appraiser that studies the market daily. The first quarter 2009 saw the average at this same price point. Does this mean we have hit bottom?
Perhaps! The buzz on the street from my peers is things are picking up. Many of us working day to day in real estate sales have noticed some changes. More phone calls, more buyers asking to see homes for sale, more sellers asking for price evaluations and more buyers bidding to purchase homes of interest.
Last week, I was in Sacramento and spoke with agents from all over the state. Aside from those agents working in resort areas or mountain communities, most have stated business is up after a quiet winter sales period. Some report bidding wars on bank owned properties.
I recently witnessed a bidding war on a home I listed that was not a distress sale. The winning bidder paid several thousand over the listed price. The home appraised with no difficulty despite the buyer using a no downpayment loan. The sale closed successfully.
The most active segment of the market is for homes priced under $250,000. Firt-time buyers and investors dominate the Redding marketplace. The number of pending home sales is up by more than 200 to 481 from January’s level and the number of home listings is stable at about 1550. Distress sales represent nearly half of the units sold year-to-date.
It appears the bottom is forming for the low-end of our market but don’t expect the high-end prices to bottom out for at least another year or so. Interest rates spiked nearly 1% last week due to inflation concerns. It is hoped the Fed will take action to push rates lower so the recovery can continue.
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
