Archive for January, 2012
American Dream of Homeownership Alive and Well
A recent survey found Americans overwhelmingly support home ownership and oppose government changing laws
regarding the mortgage interest deduction or making home loans more difficult to obtain. Here are some of the findings in the poll conducted earlier this month by Public Opinion Strategies and Lake Research Partners:
- 75% agree it is” appropriate and reasonable for the federal government to provide tax incentives to promote home ownership.” Renters and owners alike agreed to this statement. 81% of Democrats and 71% of Republicans and Independents answered in the affirmative.
- 66% believe the federal government should help home buyers secure a 30-year fixed rate mortgage. Loans insured by HUD’s FHA loan program is an example of how the government can help buyers purchase a home with a low down payment and fixed-rate.
- 73% oppose changing or eliminating the mortgage interest deduction regardless of which political party they were affiliated with. 77% of Republicans, and 71% of Independents and Democrats agreed with this statement.
- 68% would be less likely to support a candidate in favor of eliminating the mortgage interest deduction. Respondents from all three parties agreed in virtually equal numbers.
- 96% of home owners, including 84% who are upside down on their mortgage, are happy with their decision to own.
- 79% would advise a family member of friend to buy. 69% of home owners “underwater” on their mortgage would give the same advice.
- Regardless of the turbulence which recently impacted the housing market, 74% still believe homeownership is their best long-term investment.
- Nearly 80% consider owning their own home is very important to them.
- Nearly 70% of non-home owners say buying a home is still one of their goals
- Worries about continued employment and saving for a down payment are deemed the biggest barriers for those wishing to buy a home.
These survey results of 1500 likely voters are consistent with other recent polls by Pew Research and New York Times/ CBS News. This survey was featured in a January 11, 2012 article published by the National Association of Home Builders.
It would appear, despite the negative fallout from the burst of the housing bubble, the American Dream of home ownership is alive and well.
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN DOWNTOWN REDDING
NEARLY 30 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
530-224-6767 OR 530-941-7492
REDDING REAL ESTATE:2011 YEAR IN REVIEW
SHASTA COUNTY, SHORT SALES, TIPS FOR BUYERS, TIPS FOR SELLERS
2011 was another difficult year for property sellers here in the north state but buyers took advantage of low prices and near record low interest rates for financing their purchase. Sales were up while prices declined. Here is a summary of how 2011 stacked up based on data from the Shasta Multiple Listing Service (MLS):
- 2404 homes changed hands compared to 2066 in 2010, an increase of 14%
- The median price dropped from about $160,000 to $145,000 for homes sold on Shasta MLS
- The average Redding home value held steady starting the year at $106/sq ft to $107/sq ft at year’s end
- 1161 closed sales were bank-owned homes
- 258 closed sales were short sales
- Nearly 60% of closed sales were distress sales
- Inventory of active homes dropped from 1242 in January 2011 to 940 in January 2012
- Interest rates average 4% for a 30-year fixed rate compared to 4.75% one year ago
- 2011 land sales total 178 compared to 201 in 2010
- Mobile home closings totaled 129 in 2011 compared to 135 in 2010
- 25% of the closed sales sold for $100,000 or less
- 71% of the closed sales sold for $200,000 or less
- 89% of the closed sales sold for $300,000 or less
- The most expensive home sold was $2.6 million for a home in Palo Cedro
- Only four homes sold for over $1 million
- The least expensive home that sold was for $17,000 in Shasta Lake City
2012 kicked off with 904 active listings, 494 pending home sales, 134 bank owned properties listed for sale and 207 short sale listings. Of the 494 pending sales, 146 are bank owned and 178 are short sales, indicating 66% of pending sales falling into the distress category. A significant percentage of the short sales fail to close because lenders refuse the buyer’s offer with many of these ultimately being foreclosed upon or are deeded back to the bank by the owner.
The drop in median price is due to the lopsided nature of our local market where sales are focused in the lower price brackets. Rumor has it more and more bank owned properties will saturate the market in the months ahead. Thus far, sales of bank-owned properties are brisk with no lack of demand by eager first-time buyers or investors paying all cash. Home and apartment rents have remained fairly level since the real estate bubble burst in 2006.
I expect a steady increase of units sold year-to-year with 2010 being the bottom. Prices will remain soft for homes priced over $300,000 while some appreciation can be expected for homes valued under $200,000.
BRAD GARBUTT
BROKER ASSOCIATE
530-224-6767 OR 530-941-7492
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN DOWNTOWN REDDING
NEARLY 30 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
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