SHASTA COUNTY Category
Redding Home Prices Slip Again?
SHASTA COUNTY, SHORT SALES, TIPS FOR BUYERS, TIPS FOR SELLERS
After 3 quarters of relative stability, Redding home prices lost about $8/sq ft in July. Blame an onslaughtof bank-owned properties (REO’s) for the decline. The second quarter of 2010 saw a slight increase to $126.54/sq ft from $125.34 in the first quarter 2010. The last quarter of 2009 pegged the average cost per square foot at $128.08. Forty home sales for July in Redding only averaged out at $118.21/square foot.
The number of active homes for sale on the Shasta MLS for all areas of Shasta County sits at 1635 today, up from 1526 a year ago. There are 443 homes in escrow compared to 500 last August at this time. Of those pending sales, 140 are bank-owned and 119 are short sales. That works out to 58% of the pending sales being distressed properties-REO’s or short sales. Last year, 40% were distress sales.
The number of REO’s listed for sale has risen steadily from 160 the first of this year to 229 today. 1200 homes have closed year-to-date, slightly more than a year ago at this time. The Federal and State tax credits pumped up sales in the spring but have expired now leaving the market to find its own way during these difficult economic times. Record low interest rates have not motivated buyers timing their entry into the marketplace. Home equity loss due to declining values has prevented many homeowners wishing to take advantage of these rates from refinancing.
Markets elsewhere in California, specifically the coastal areas, have stabilized or experienced year-over-year double-digit appreciation noted in some areas such as San Jose. Redding is suffering under higher than average unemployment and loss of equity refugee buyers from nearby metro areas. One positive note for July is the sale and closing of 5 riverfront properties from Redding to Anderson between $405,000- $537,500!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
Do You Know Your Redding Home’s Walkability Score?
INDUSTRY NEWS, LOCAL GOVERNMENT, SHASTA COUNTY, TIPS FOR BUYERS
Location, location, location is taking on a new meaning in the 21st century as home buyers switch from focusing on schools and neighborhoods to proximity to stores and public transportation. Urban planners cite concerns over future oil prices as the main reason for the shift. They say baby boomers with empty nests and their children buying their first home both are shying away from large lots in remote areas prefering neighborhoods near big box stores, public transportation and entertainment venues.
According to an article published recently in THE WALL STREET JOURNAL,many websites have sprung up to assist home buyers rate a property’s walkability. One such site, www.WalkScore.com allows users to enter a property address and receive a score from 0-100 pegging the walkability of the neighborhood. The scale goes from “car dependant” to “walkers paradise”.
Redding is slowly catching up to this trend with recent zoning changes that allow mixed uses for downtown area parcels. The new Kobe’s Steakhouse location is one example of allowing restaurant,offices and residential units under one roof. Unfortunately, Redding planners for decades preferred island subdivisions away from retail and commercial areas. Most Redding residents must hop in their car to go grocery shopping, take in a movie or eat out. Urban sprawl has been the norm as Redding sought to expand the city limits to gain additional land for development. In recent times, our city officials have experienced the financial pain of extending utilities, maintaining streets and providing police and fire protection to those furthest from the city’s core.
There is mounting evidence that housing prices are higher for properties within walking distance of amenities.One such study was published by the non-profit group CEOs for Cities. For each one point increase in a Walk Score values increased by as much as $3,000!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
City of Redding:Know Your Hispanic Gangs?
LOCAL GOVERNMENT, SHASTA COUNTY
Top City of Redding officials want city employees to be on the lookout for signs of gang activity following several recent highly publicized gang incidents in the Redding area. An internal communication memo sent out last week asks city employees to keep their eyes open for gang-related activity since many employees are out and about the Redding area performing their work duties.
Anyone observing gang activity is asked to contact Sergeant Bruce Bonner at 225-4294 or Sergeant Jeff Wallace at 225-4297. I believe the citizens can aid the city by reporting suspected gang activity. Here are some facts about the gangs in question:
Nortenos
- use the number 14 for the 14th letter of the alphabet “N” for north
- controlled by the Nuestra Family prison gang
- gang attire includes red shirts, pants, boxers ,shoes, shoelaces, bandanas, hats, etc.
- call rival Surenos gang members “Scrap”
Surenos
- use the number 13 for the 13th letter “M” which stands for Mexican Mafia
- The Mexican Mafia is the prison gang that controls all Sureno street gangs
- gang attire includes blue shirts, pants, boxers, shoes, shoelaces, bandanas, hats, etc.
- call rival Nortenos gang members “Buster”
More resources have been assigned to this problem according to City Manager Kurt Starman and Police Chief Peter Hansen. They hope to squelch these gangs quickly before they get a foothold in the Redding area. Let’s all help the city in their efforts to stamp out these gangsters!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
Unscrupulos Interests Blamed For Housing Market Meltdown
Henry Cisneros pinned the housing crisis on greedy Wall Street firms, not government policies he championed as HUD Secretary during the Clinton Administration. Exotic instruments were created to collateralize mortgages then packaged and sold around the world by profiteers wishing to take advantage of the housing boom. Henry is credited with expanding homeownership during his term as HUD Secretary from 1993-1997.
He also believes insurance agencies that rated these new financial instruments failed to accurately assess the riskiness of these investments. Cisneros addressed a group of real estate editors recently in Austin, Texas. However, he did place some blame on government’s unwillingness to regulate risky financial instruments during the Clinton and Bush Administrations.
Many have blamed the government for policies designed to increase homeownership among minorities for causing the housing bubble. Few would disagree that Fannie Mae and Freddie Mac facilitated the crisis by buying, repackaging and selling mortgage-backed securities that fell short of previous standards. Whistle-blowers at Fannie Mae alerted superiors that loans being presented by banks for purchase were not underwritten to their standards.
I believe there is plenty of blame to go around. If any of the players necessary to create this fiasco would have done their job, this crisis would have been averted. Overzealous lenders, Wall Street investment bankers, insurance companies and government regulators all failed to protect the integrity of time tested policies designed to prevent just such a tragedy. Unfortunately, few will be punished leaving them to enjoy their millions in profits as long as they live in this world.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
Redding Real Estate Prices Stabilizing?
HOME LOANS, INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS
According to one Redding appraiser who tracks average home prices, prices are slowly ticking upward. The low point since the bubble burst in 2006 was March with 91 home sales with an average sales price of $203,830 or $121.08 per square foot. May saw 99 home sales averaging $214,352 or $124.6 per square foot. It would not be unreasonable to say the market is showing signs of stability especially if we’re talking about entry level homes priced below $250,000.
Inventory of available homes on the Shasta Multiple listing service is 1552 today, up from early January’s low of 1301. Pending home sales sit at 467 today, down from the peak of 529 the first week of May. This is likely due to the rush to buy before federal tax credits expired at the end of April. Closed sales for residential properties in 2010 total 824 units thus far.
Nearly 200 homes listed for sale are bank-owned homes, an all-time high for this market cycle. Another 248 homeowners are short sales or pre-foreclosure homes. 141 bank-owned properties are in escrow. 137 short sale listings are also in escrow. These two categories of distress sales represent 60% of the pending sales activity but less than 30% of the active listings.
Shasta County is still experiencing a high number of properties working their way through the foreclosure process. Unemployment is dropping slightly but remains nearly double the national average. Mortgage rates dropped unexpectedly due to European financial turmoil causing investors to move money into US securities. The 30-year fixed rate is around 4.75%!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
Bill To Provide Borrowers Deficiency Liability Protections
INDUSTRY NEWS, REAL ESTATE LEGISLATION, SHASTA COUNTY, SHORT SALES, TIPS FOR SELLERS
Many homeowners are not aware of a loophole that allows banks to pursue certain borrowers for any cash loss they suffer as a result of a short sale or foreclosure. The existing law, which was passed in the 1930’s, protects homeowners from deficiency liability if the loan was used to purchase the home. The problem arises when the loan is refinanced. The protection does not apply to purchase money loans that are later refinanced, even if doing so allowed the borrower to benefitfrom a lower interest rate.
Senate Bill 1178, authored by Senator Ellen Corbett, does not protect borrowers that used cash-out refinances or equity lines to pay bills or buy cars, boats, RV’s or stock investments. Only borrowers that used cash generated from a refinance to improve their primary home would be protected by this bill if it passes. Most borrowers were unaware that a refinance caused a forfeiture of this liability protection. In legal terminology, purchase loans are non-recourse loans while refinanced loans are recourse loans.
Banks doing business in California understand that the property is the security for the loan, not the borrower. Purchasers that later refinanced had no idea they were losing this protection exposing themselves to personal liability and even new tax liability. Lenders can pursue the loss for up to ten years after a foreclosure or short sale. They can sell the accounts to aggressive collection agencies or bundle them as securities. This allows banks, which created this mess to begin with, to add insult to injury by chasing families that have already lost their home for money they don’t have.
Call your local State Senator and ask him or her to vote yes on SB 1178. In our area, call Senator Sam Aanestad at 530-225-3142.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
Mosquitoes Bugging You?
LOCAL GOVERNMENT, SHASTA COUNTY
The wave of foreclosures in Shasta County has had a stinging side effect-abandoned pools and ponds have become mosquito breeding havens! If you know of a neglected water feature in your neighborhood, the Shasta Mosquito and Vector Control District would like to hear from you.
Every property owner in Shasta County pays for mosquito control through an assessment on their property tax bill. The district needs your help identifying problem pools and ponds that become production grounds this time of year for mosquitoes. These insects can potentially spread viruses including West Nile Virus.
Contact the district at 530-365-3768 and provide them the address of a property you are aware of which has an abandoned pool or water feature. They will investigate and attempt to contact the owner or bank to gain permission to evaluate the situation. If necessary, the district will treat the problem using guppy-like fish that eat mosquitoes or possibly a chemical larvicide will be applied. There is no charge for the service.
Besides inspecting and treating pools, the district also surveils disease by taking blood samples from chickens and sick or dead crows, magpies and jays which are first indicators that West Nile Virus is in the area. Other targets include ticks which can spread Rocky Mountain Spotted Fever and Lyme Disease.
The district needs your help because warmer weather perfect for breeding millions of mosquitoes is just around the corner. You can help make your outdoor leisure activities safer and more enjoyable by reporting neglected or abandoned pools where you live.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVIN REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
Turtle Hunters Outrage Mary Lake Park Visitors
REDDING RECREATION, SHASTA COUNTY
A Honda coupe with two upset ladies pulled up alongside my wife and I as we began a walk around Mary Lake yesterday afternoon. They had just jotted down the license number of a suspected turtle hunter’s Jeep and informed us two guys were trapping turtles for resale on EBay. We love the turtles. We shared their dismay. How dare these guys steal our turtles to make some quick bucks on the Internet!
I suggested the ladies call the local fish and game office to see if this type of hunting was legal. They said they would and also planned to call the police because the Jeep’s license tags were expired. They went on to say they grabbed their buckets of captured turtles and threw them back in the lake. We promised to talk to the guys when we crossed the dam where they were again fishing for turtles using a net and fishing pole.
Just then, a vehicle emblazoned with City of Redding Fire Department decals drove by and was flagged down by another group of ladies also angry with the turtle hunters. He offered to speak to them and we decided to tag along. The two men calmly explained why they were trapping the turtles. The turtles they were after are non-native turtles such as those purchased from pet stores apparently released into the lake by owners that no longer wanted them.
Dozens of turtles perch on logs scattered around the lake sunning themselves this time of year. They are shy, usually dropping into the water when approached. These guys easily lured the turtles using baited fishing poles and trapped them with nets. Regardless of the legality of catching the turtles, many folks let these guys know in no uncertain terms their for-profit hobby was not appreciated one bit!
The gentleman from the fire department agreed with the men that ridding the lake of these turtles was probably legal and beneficial. I was torn by this reasonable explanation-not wanting to surrender our local terrapins to these guys motivated primarily by dollar signs. They said it is perfectly legal and were actually encouraged by fish and game officials to rid this lake of these competitors of native turtles.
That explanation didn’t fly with park users who confronted the two men. They eventually left with a couple turtles -far less than their original catch. I doubt they will be deterred from returning to trap more turtles in coming weeks believing they are doing us a service.
Last year, several beavers were found dead in the lake apparently victims of a teenage prank. One neighbor saw several youths pelting the beavers with large rocks. Mary Lake residents and park users are sensitive to those that would exploit the wildlife for their own amusement or profit. Hopefully the lake will remain a home for water fowl, beavers, otters, fish and yes, even turtles!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN A QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Confusion Surrounds Curbside Recycling Program
LOCAL GOVERNMENT, SHASTA COUNTY, TIPS FOR SENIORS
Since 2001, Redding residents have been provided blue carts to replace the bins previously used to separate glass, paper and plastic. The “single stream” method allows residents to throw everything in one bin for sorting at the city’s transfer station. However, despite the many years this program has been in place, between a third and one half of items tossed in the recycling cart are non-recyclable.
This week I was headed home from work and noticed all the blue bins left curbside for pickup were empty except one. My neighbor had a large plastic trash bag on top of their full bin preventing the lid from closing. I suspect the driver spotted this non-recyclable item and decided it was filled with items deemed contaminants. The bin was not emptied and likely a form letter was left explaining which items were inappropriately placed in the bin.
This is a common problem, even in our home. My wife and I debate what items should and should not be placed in the cart. I find myself regularly removing items tossed in the blue bin knowing it is not on the list of items that should be placed in the cart. The sticker on the lid detailing what should and should not be recycled peeled away years ago.
The City of Redding’s website has a complete list and explanations of items accepted and common items that should not be placed in the bin. The following link will take you to that page:
Here are some items on the no-no list: http://www.ci.redding.ca.us/solwaste/recyclingrules.htm
- Plastic bags-including trash bags, shopping bags and the blue bag the newspaper comes in
- Styrofoam-including cups,egg containers and packaging materials
- Waxed cardboard-including milk and juice cartons
- Aerosol cans
- Shredded paper-it clogs the sorting machine
- Wire, rope and chain
- Wrapping paper and cards if they contain metallic printing or lining
Most plastics with numbers 1 & 2 are accepted as long as the mouth is narrower than the base. Other items accepted include:
- Glass bottles and jars, aluminum and tin cans
- Newspaper and paper egg cartons
- Junk mail and catalogs
- Cardboard and pasteboard boxes-broken down and plastic liners removed
The drivers also request the various collection carts be positioned at least three feet apart to allow the automated trucks to empty the cans.
The city has tried to make recycling as easy as possible so let’s all help make their jobs easier by educating ourselves regarding what should and shouldn’t be placed in the blue bin.
530-941-7492 or 530-224-6767
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
Redding/Shasta County Real Estate Market Update
INDUSTRY NEWS, SHASTA COUNTY, SHORT SALES, TIPS FOR BUYERS, TIPS FOR SELLERS
Distress sales continue to represent a significant number of homes selling in today’s market. The second week of March was marked with 465 homes pending. Of these, 133 are bank-owned homes and 157 are short sales or 41% of all homes under contract. These same two segments of the market only account for 31% of the 1379 active listings.
February saw 131 homes sold. 85% were listed for $300,000 or less. More than a third of the homes sold were priced under $150,000. Ten more homes sold this February than a year ago. The number of bank-owned properties listed for sale has doubled from a year ago.
Home prices continue to slide downward as noted by a local real estate appraiser. The last quarter of 2009 saw the average cost per square foot of homes in all areas served by the Shasta MLS drop from $122.75 to $114.86. On the positive side, prices for new homes actually increased to $158.29/square foot from $147.72. However, there have been far fewer new homes sold year-to-date than the last quarter of 2009. Homes more than 5 years old in Redding sold on average for $125 the end of 2009 and for $120 thus far this year.
The area price declines can be pegged to continuing high numbers of homes in various stages of foreclosure due to high unemployment and sharp price declines after the housing market bubble burst. Banks seem to be in no hurry to clear their books of overvalued assets which prevents steeper declines in prices in the near term but prolongs the overall recovery of the housing sector.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
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