Redding Real Estate Market Update
INDUSTRY NEWS, SHASTA COUNTY, SHORT SALES, TIPS FOR BUYERS, TIPS FOR SELLERS
November 24th, 2009
Last year about 1/3 of all homes sold fell in the distress sale category. This year that number has increased to 44%-no big surprise. Next year expect half of all sales to be distressed sales-either bank foreclosures (REO’s) or short sales. So far, 1792 homes have closed escrow on the Shasta MLS for 2009 of which 622 were REO’s and 172 were short sales.
Currently, just over 1400 homes are for sale. 133 of these active listings are REO’s. 231 are short sale listings-where the total loans and closing costs exceed the home’s value. 464 homes are pending sales. That works out to 3 homes available for every home pending. This is much better than 2007 when there were seven homes for sale for each home pending.
The average cost for a 1750 square foot home in Redding hovers just below $130/square foot. That number was $139 at the beginning of the year. 211 homes closed escrow in October-up from 178 a year earlier. 77% were priced at or below $250,000. No homes sold over $700,000.
The foreclosures taking place today are primarily on homes owned by creditworthy borrowers in financial distress due to job loss or a cut in hours. The economy is to blame, not sub-prime loans. Banks have the unenviable task of foreclosing then selling these properties. Placing too many of these homes for sale in the same area at the same time could drive down values which would undermine other loans on neighboring properties held by these banks. Taking too long to get these REO’s off the books could prolong the housing crisis by several years. The inventory of REO’s in Shasta County is on the rise despite a nearly insatiable appetite for these homes by first-time buyers and investors. 2010 may be the year the real estate market turns the corner heading for better times.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS REAL LIVING
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
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