Trading Down May Hurt
INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR SELLERS
September 26th, 2009
The new reality that currently exists in the marketplace favor move-up buyers more than trade-down buyers. The reason is demand is stronger at the low end of the market. Homeowners wishing to sell their larger, more expensive home so they can purchase a smaller, cheaper home will likely encounter two distinctly different markets.
In Redding, 92% of August sales activity was focused on homes priced under $350,000. Investors and first-time buyers are competing to buy affordable homes and in some cases are experiencing bidding wars for the most desireable properties. Meanwhile, sellers of homes above $350,000 are seeing little activity and will have to be very flexible negotiating a sale with skittish buyers hesitant of future price erosion.
Move-up buyers should be better off as they sell their smaller, more affordable homes and bargain hard for the larger more expensive homes. Among buyers clamoring to buy their first home are teachers, police officers and firefighters who were locked out of home ownership when home prices soared out of alignment with area wages.
Another advantage to the current market prices are property tax savings. Shasta County real estate prices have declined roughly 40% from the peak, meaning the property tax bill for homebuyers today will have dropped by an equal measure. The average home price in Redding/Shasta County peaked at $300,000. Today, its closer to $200,000. That $100,000 difference results in more than $1,000 per year in property tax savings! Prop 13 will lock in that assessment even if prices rise in the years ahead. The tax savings are even greater for the higher end of the market.
If you need help analyzing a trade, up or down, contact me:
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 SALES EXPERIENCE
Great goods from you, man. Trading Down May Hurt | Brad Garbutt I’ve understand your stuff previous to and you’re just extremely wonderful. I really like what you have acquired here, really like what you’re stating and the way in which you say it. You make it entertaining and you still take care of to keep it wise. I can’t wait to read far more from you. This is actually a tremendous Trading Down May Hurt | Brad Garbutt informations.