Redding Home Prices Slip Slightly
SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS
July 9th, 2009
During the first 4 months of 2009, home prices in Redding held steady at $136/square foot as reported by a local real estate appraiser. 2nd quarter numbers are in and the price per square foot overall has dropped a tad to $133.83. One could argue this change is not statistically significant, and I would not disagree.
Sales in June increased 28% from the April/May time period. Analysis further reveals the number of units sold leaped 40% in the 2nd quarter compared to the 1st quarter of 2009. He points out that these averages are not true for all homes in Redding-age is an important variable.
Newer homes, those 5 years of age or younger, sold at $156/square foot in the 2nd quarter compared to $155.38 in the 1st quarter 2009. This deviation is insignificant. Older homes, 20 years old or older, sold on average at $119/square foot during April-June compared to $113/square foot in the 1st quarter, a noteworthy rise that may indicate a trough is forming.
I’m not betting the ranch that the market bottom has been reached, however I do believe the bottom is forming for homes priced at the low-end of the spectrum while the high end homes will likely see stabilization sometime next year. Once the market stabilizes, I doubt we will see double-digit annual appreciation since banks will be stingy with their lending practices for many years to come. I would expect slow price growth over the long term which is better, in my opinion, for sustaining the health of the housing industry.
Many homes selling today are priced below replacement cost-a rarity in the California housing market!
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
