Archive for December, 2009
Shasta Sunset Dinner Train Let Down
I heard for years from friends and family what a great time could be had boarding the Shasta Sunset Dinner Trainfor an evening excursion. Fine food and drink, dancing in a specially outfitted boxcar or taking in the scenery while standing on an uncovered flat car as the train made its way from McCloud to Mt. Shasta and back were all explained to me prior to our trip this past weekend. Unfortunately, the fact the dinner train is calling it quits after New Year’s Eve explained why many of these elements of trips past were not to be had this time around.
The record freezing temperatures in early December apparently took its tollon the soon-to-be-idled dinner train. The open flat car used as a viewing platform at the caboose end of the train was instead used to site a huge generator to run the train’s electrical equipment. It was placed in front of the engine and was inaccessible to passengers. The boxcar used as the dance venue was damaged by the freeze and was not part of the train assemblage. The freeze also damaged sections of the train tracks beyond the summit where the ski park road crosses the track. Therefore the train ride was a series of short forward and backward jaunts east and west of McCloud. In fact, the train never made it over the ridge west of McCloud.
We boarded the train Saturday December 19th at 6PM sharp along with many familiar Redding faces. The food
was excellent though the service was slow. My Beef Wellington was tender and moist and my wife’s salmon entree was fresh and perfectly cooked. However, some of the bathrooms were out of service causing some distress for those with small bladders. Two or three people were always waiting for their turn to use the facilities which, according to my wife, were not operating properly. Thankfully, I hold my water like a camel!
The impending closure of the business was obvious by the long faceson much of the wait staff. However, the conductor was in good spirits as he made his round to punch each passenger’s boarding pass. He was also busy switching the tracks as the train made numerous stops in its back and forth route around McCloud. Two passengers including a woman seated at the table behind us became ill from motion sickness and were disambarked at the ski park highway crossing.
I was looking forward to a little dancing after dinneror at least sitting outside in the brisk winter night to admire the starlit skies but that was not in the cards. I don’t blame the owners of the dinner train for not fixing these equipment problems considering the days are numbered before this business ceases operation. I feel for the employees and lodge owners in McCloud and Mt. Shasta that accommodate manyof the patrons of these excursions. I don’t mean to discourage those riding the dinner train in its final days but be forewarned the route and on-board amenities may not be what was offered in years past.
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
Inventory Of Bank Repo’s On The Rise
FHA LOANS, HOME LOANS, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS
Shasta County has thus far absorbed the onslaught of bank foreclosed homes until just recently. I’ve tracked the number of REO’s (real estate owned), as they are called in real estate jargon, for the past year and the number of these avaiable homes has been relatively stable until Halloween. November marked the beginnining of a steady rise in the number of properties classified as REO’s. Today, 156 properties are listed as active (available) compared to most of the year when that number ranged from 110-120. That represents an increase of about 1/3rd!
First-time buyers and investors have been snapping up these properties soon after they hit the market. In some cases, bidding wars pushed the final selling price above the asking price! Buyers are attracted to these properties like flies to you know what believing they are capitalizing on someone’s loss. Low down or no down payment loans such as FHA and USDA have been used to leverage buyer’s limited cash resources to facilitate a purchase. Out-of-area buyers that largely fueled the run-up in real estate prices during the boom are all but gone. Today’s market is dominated by local Shasta County residents taking advantage of low prices and interest rates.
I wonder though if we have hit a saturation point looking at this significant uptick in available REO inventory. Speculation that banks are sitting on more than a million foreclosed homes could explain this increase. Perhaps banks are lowering the flood gates allowing more foreclosed inventory to hit the market. Banks must closely monitor the impact of listing REO’s for sale as a flood of distressed priced homes in one geographic area will only undermine values of other homes which these same banks hold loans on in these neighborhoods.
Shasta County’s higher than average unemployment rate only exacerbates the problem. Lenders aren’t approving loans for all but the most creditworthy borrowers. Additionally, prospective buyers must have stable and verifiable income to be granted loan approval. There’s talk of upping down payment requirements for the very popular FHA loan program from 3.5% to 5%. Credit score thresholds have been raised a couple of times this year by Fannie Mae to the point those with credit scores below 650 may not qualify for any loan. A local mortgage broker told me this will have a major impact locally where, according to him, the avearge credit scores of borrowers he sees is just over 600.
Indications are 2010 will be another challenging year for all who work in the housing sector. Real estate agents, lenders, appraisers, escrow officers, home inspectors and contractors need to plan for another rough year as our nation nurses the hangover caused by lax oversight of the lending industry.
Many parts of California and the nation are reporting increases in home prices. Don’t expect that to happen here in the Redding/ Shasta County area until foreclosure activity subsides and REO listing inventory decreases to double-digit levels. I predict this will not happen here until 2011-at the earliest!
530-224-6767 or 530-941-7492
BRAD GARBUTT
RELTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS REAL LIVING
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL SALES EXPERIENCE
Local Realtors Give Back To Community
REDDING LIFESTYLES, SHASTA COUNTY
The Shasta Association of Realtors sponsor several events this month focused on giving back to the community. Two weeks ago dozens of phone cards were given to local US Army representatives to send to troops in Afghanistan so they can call home for the holidays. Realtors and affiliate members including lenders, title companies and appraisers raised money to fund the purchase of prepaid phone cards.
Last week, more than 225 special needs children from across Shasta County attended a Christmas party thrown by Realtors at the Elks Lodge. The 37Th Annual Children’s Christmas Party included singing Christmas carols, a visit from Santa and Mrs. Claus and presents selected by teachers for their students and paid for by Realtors. The Elks donated their lodge and many Realtor volunteers helped set up, decorate and clean up afterwards. We’re told this gift may be the only gift some of these kids will receive for Christmas.
Last week also saw several homeowners awarded cash prizes for decorating their homes with lights for the holidays.
Realtors sponsor the annual decorating contest and results are posted online at redding.com for the public to utilize in organizing a tour of these decked out homes.
Gift baskets for seniors in residential care facilities are being readied for distribution. These include toiletries, gloves, warm socks and sweet treats for men and women living in single family homes used as care homes. Seniors will receive these baskets before Christmas.
This has been a challenging years for the real estate industry yet we never forget those in need. I wish to thank the Affiliate and Social Committees for their hard work on these events that brought a smile to so many this holiday season.
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
November Home Sales Dip In Redding
SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS
As expected, the number of homes sold in November declined after two months of sales increases as first-time buyers bought before knowing the federal tax credit would be extended. 163 homes sold in November, up slightly from 152 during the same period of 2008. 84% of these homes sold were priced below $300,000.
Sales and listing activity slows during the holiday season. 433 homes are in escrow and 1888 homes have closed escrow year-to-date. At this pace, home sales for the year will barely reach the 2000 mark. The number of homes for sale on the Shasta MLS has dropped to 1373. Homeowners attempting a short sale currently represent 229 of the active homes listed for sale.
One other item of interest are bank repo’s (REO’s). For the first time this year the number of REO’s listed for sale is on the rise. For most of the year, the number of REO’s for sale has been consistent from one week to the next at about 120. The last three weeks has seen a steady increase to today’s count of 149 REO’s listed as available. This either is due to the seasonal slowdown in sales or the local market has passed the saturation point. Investors and first-time buyers have snapped up these properties at a steady clip in 2009.
Distress sales, REO’s and short sales represent about 44% of sales activity locally. Next year’s forecast predicts more than 50% of sales will be distress properties. Price stabilization will not occur until foreclosures drop back to historic norms.
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 SALES EXPERIENCE
Realtor Christmas Light Contest Near
REDDING LIFESTYLES, SHASTA COUNTY
Judging begins next week for the annual Realtor sponsored Christmas Light contest. Homeowners that have decked out their yards for the holidays can enter to win cash prizes. Call the Shasta Association of Realtors for details and entry form. The first round of judging will take place Monday December 7th.
Several judging teams fan out across the greater Redding area each visiting 10-15 homes in specific geographic areas. They gather afterwards to turn in their scoring sheets and discuss their rankings. The field is narrowed and top contenders are judged again by all judges Tuesday December 8th.
Entries are accepted for homes located in Redding, south to Cottonwood, east to Bella Vista and Palo Cedro, north to Mountaingate and west to Shasta and the Placer Road vicinity. The winners will be announced in the paper along with details and a map of all the entries.
Now that Jim McDilda’s Christmas display has outgrown his home and downtown promenade, entrants have a chance to capture one of the prizes. Realtors and affiliates of the Shasta Board volunteer their time to drive around and judge the displays. Last year my wife and I participated in the judging and we enjoyed the variety, creativity and hard work of those that entered the contest.
This is a great way to find out where the best decorated homes are located so you can take a drive with friends and family with a Thermos of hot chocolate and get in the holiday spirit!
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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