The vast majority of homes selling today are priced under $300,000. Of the 208 homes sold in April, 191 were sold for $300,000 or less. The most active price bracket is the under $150,000 range which tallied 105 closed sales in April.

For homes in Redding, the average cost-per-square-foot has remained relatively steady at about $108/sq ft. The average home is defined as a home with between 1500-2000 sq ft.

Inventory has tightened significantly over the past year. 1034 homes were listed for sale in early May 2011 compared to 751 today. The number of bank-owned homes in the inventory has dropped more than half from 202 last year to 96 today. Short sales have increased their share of market activity with 69 active listings and 235 in escrow today. Last year there were 94 active listings and 153 short sale properties in escrow.

Of the 632 pending home sales, 63% are distress sales-bank-owned or short sale listings. This percentage is in line with what we have been seeing in the local markeplace these past two years.

Interest rates for home loans continue to push lower. Today, a 30-year fixed rate loan is available (for those with good credit and verifiable income) at 3.75%. A 15-year fixed is down to 3.09%.  This good news is dampened somewhat by a rise in mortgage insurance fees associated with FHA loans, one of the more popular types of loans in this area.

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN DOWNTOWN REDDING

NEARLY 30 YEARS OF LOCAL REAL ESTATE EXPERIENCE

530-224-6767 OR 530-941-7492

bradgreps@yahoo.com

www.thereddingrealestateguy.com

• 207 home sold in February 2012 compared to 129 a year ago
• 92% of homes sold in February had a list price under $300,000
• 732 homes were listed for sale as of March 5, down 37% compared to the previous year
• 541 homes were pending compared to 472 in early March 2011
• 141 bank-owned homes and 204 short sales equalling 64% of pending home sales are “distressed” properties
• 418 homes have closed escrow in 2012, up 69% for the same time period in 2011

Mortgage rates for fixed-rate loans are averaging 3.17% for a 15-year loan and 3.9% for a 30-year loan. Investors paying cash and first-time buyers using FHA loans dominate the market.

Wild cards which could impact home sales in 2012 include Adjustable Rate Mortgage interest rate resets and strategic defaults by homeowners underwater on their loans. Of the 47 million loans nationwide, 3.6 million are delinquent and 12,533,155 are underwater 125%  or more!  We still have a long way to go before the housing market recovers and returns to any sense of normalcy. At least we appear to be headed in the right direction!

BRAD GARBUTT

BROKER/REALTOR ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN DOWNTOWN REDDING

NEARLY 30 YEARS LOCAL REAL ESTATE EXPERIENCE

FREE CONSULTATIONS TO BUYERS AND SELLERS

530-941-7492

BRADGREPS@YAHOO.COM

WWW.MOVETOREDDING.COM

• 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

Last year at this time, 1582 homes sold and closed. This represents a 16% increase in sales activity. Two factors contributed to the increase in my opinion-higher affordability due to lower home prices and historically low interest rates. Currently, home buyers with good credit can secure a 30-year mortgage at or below 4% and the 15-year rate is close to 3.3%! Low interest rates increase affordability and buying power for first-time buyers and investors are finding buying rental homes pencil out better than expected.

Inventory of available homes has been tight in 2011 with only 1159 active home listings available today. Last year in early October 1537 homes were listed for sale, 25% more than today. Pending home sales are higher despite the skimpier supply with 485 homes in escrow today compared to 421 a year ago.

Bank owned properties (REO’s) and short sales (distress sales) account for more than 60% of sales activity. Of the 485 pending home sales, 150 are bank owned and 150 are short sales. There are 186 active listings which are REO’s and 214 short sale listings.

Home prices continue to decrease, dropping 7.5% thus far in 2011. Last year home prices dropped 11%, which was the steepest decline since the housing bubble burst in 2007.  Overall, prices are down 45.6% from the peak in 2006, The avearage sales price today of $176,299 is similar to 2002, when the average price was $174,023.

Home prices appear to have stabilized for the low end of the market for the typical Redding home (defined as a home between 1500-2000 sq ft). In the first quarter of 2011, the typical home sold at $106.15/sq ft, $107.31/sq ft in the second quarter and $108.83/sq ft for the quarter that just ended.

Of the 221 homes that sold in September 2011, 195 were priced under $300,000. No homes priced over $550,000 sold in September. Nearly 100 of th0se sales were priced at or below $150,000.

The raw numbers indicate we have two distinct markets in the Redding/Shasta County area: the very active low-end market below $200,000 and the sluggish mid-to upper-end market! If banks are holding off listing homes which would appeal to first-time buyers and investors, they should reconsider. Many, well-qualified buyers are ready, willing and able, just waiting for affordable properties in good condition to be placed on the market.

Contact me if you have any real estate questions.

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

530-941-7492 or 530-224-6767

bradgreps@yahoo.com

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN DOWNTOWN REDDING

NEARLY 30 YEARS LOCAL REAL ESTATE EXPERIENCE

A local real estate appraiser noted in his recent newsletter the average price per square foot has held steady this year at $106. The typical Redding home is 1500-2000 square feet. There are 549 homes in escrow today compared to 467 a year ago. That figure is also about 20% higher than 12 months ago.

The number of bank owned properties listed for sale (184) is down significantly from the beginning of the year (255). Where’s that shadow inventory people are talking about? We need more home listings in the lower price brackets to satisfy the strong demand.

Mortgage rates have dropped again after rising the first quarter of 2011. Well-qualified buyers can secure a 15-year loan at 3.75% or a 30-year fixed at 4.5%. The low downpayment FHA loan and no downpayment USDA loan products are still available. Those with low credit scores (under 600) may still qualify if they can tender a larger downpayment.

Short sale inventory has spiked from 211 at the beginning of the year to 225 today. Fortunately, the number of properties pending the short sale process have increased from 97 in January to 144 today.

Year-to-date 952 homes have closed escrow compared to 866 at this point in 2010 or about a 10% increase year-to-year.

It would appear many buyers are jumping off the fence and buying believing we are at or near the bottom of this lengthy market downturn. Most of the activity is occurring in the under $300,000 price range. Of the 220 homes sold in May, 204 were listed for $300,000 or less. Nearly half were priced below $150,000.

First-time buyers and investors account for the lion’s share of buyers in the home marketplace today.

bradgreps@yahoo.com

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 28 YEARS LOCAL SALES EXPERIENCE

Here are some other interesting findings:

• 47% of the 1222 homeowners surveyed said their home is worth less now than before the recession began
• 31% said their value is the same
• 17% said their home is worth more

Overall, home prices nationwide are down about 31% from pre-recession levels according to the S&P/Case-Schiller Index. However, homeowners still have a more optimistic outlook on owning vs. renting. Only 31% of renters strongly agree homeownership is a good long-term investment compared to 41% of homeowners.

The sample group consisted of respondents as follows:

• 57% own a home
• 30% are renters
• 13% have other living arrangements such as living with family

Only 24% of renters say they rent by choice. The overwhelming majority would prefer to own if they could. An associated question regarding long term financial goals showed a high correlation between “being able to live comfortably in retirement” and “being a homeowner” instead of a renter. 80% of respondents rated both as extremely or very important.

The “wealth effect” created by the market bubble during which time home prices soared 137% changed consumer behavior. Spending and borrowing surged during the run-up in prices then quickly reverted back to more sane behavior once the bubble burst.

One final conclusion drawn from the study is the longer people have been homeowners, the more likely they believe homeownership is a good investment. They also correctly believe the bubble led to inflated home prices unaffordable to young Americans in their 20’s and 30’s.

The value drop in the Redding/Shasta County area is closer to 50%. The fact that the majority of local home buyers today are first-time buyers and investors confirm this studies findings-homeownership is still the American dream!

bradgreps@yahoo.com

530-224-6767 0r 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER DOWNTOWN REDDING

NEARLY 30 YEARS LOCAL REAL ESTATE SALES EXPERIENCE

The Shasta Association of Realtors contracted with Vestra Resources here in Redding to produce the map book. Realtors proofed the map in an effort to make sure it was as accurate and up-to-date as possible. The last map book produced by Compass Maps was more than 6 years old. That company went out of business.

Realtors know a good map book is a handy tool even with GPS and navigation units becoming more and more popular. These map books are favorites with emergency service providers, delivery truck drivers, contractors or anyone who travels in the north state for sales or service.

You can purchase a copy at the Shasta Association of Realtors office at 840 Remor Street. Call 223-0410 for directions!

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

NEARLY 30 YEARS LOCAL REAL ESTATE SALES EXPERIENCE

CORNER OF COURT AND PLACER IN REDDING

Pending home sales are up considerably from the beginning of the year. 494 homes are in escrow compared to 344 in early January on par with sales levels for the same date in 2010.  Of the nearly 500 homes in pending escrows, nearly 200 are bank owned (REO’s) and 136 short sales. That works out to precisely 2/3rd’s of homes in escrow being distress sales - about 10% higher than a year ago.

Homes priced under $250,000 account for more than 80% of pending sales. 453 homes have closed escrow year-to-date, about 10% ahead of last year’s pace. The number of  REO listings is up 77% from one year ago. Short sale listings are down nearly 10% over the same time period.

Investors and first-time home buyers make up the majority of purchasers in today’s real estate market.First-time buyers benefit from low interest rates and the fact housing affordability is way up in this part of California. However, buyers must have great credit, documentable income and, as one local lender recently joked, be willing to “bring their entire filing cabinet” to me so Ican prove your ability to repay the loan. A significant number of investor buyers bring all cash to the closing table avoiding the headaches and hurdles created by overzealous underwriters wishing to cover their hind end!

 One last thought, some banks are working hard to get borrower’s loans approved, others are working hard to find an excuse to deny them a home loan. Ask your Realtor for lender referrals to avoid losing time and money working with the wrong lender.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESIONALS

CORNER OF COURT AND PLACER IN DOWNTOWN REDDING

NEARLY 30 YEARS LOCAL REAL ESTATE EXPERIENCE

Municipalities across the state adopted codes for second units. However, some planning agencies made these rules so restrictive building a second unit is nearly impossible. Redding initially adopted stringent rules but recently amended the zoning ordinance to make them more workable in the real world. Here are some of the changes:

• Note the purpose of the changes is to recognize second units are more affordable and energy efficient
• Second dwelling is not required to meet the density requirements of the General Plan or Zoning Ordinance
• Lot size can be as small as 6000 square feet as long as the lot is at least 60′ wide
• Allows second units to be up to 800 square feet as long as it is 30% smaller than the main residence
• Second units can be attached or detached
• Requires one off street parking space per bedroom of the second dwelling
• Allows the second unit to be larger than the main house if the second unit is intended to be the primary residence
• Rules can be further relaxed if the second unit will house a disabled person

The amendments can be found in Chapters 18.43 and 18.15 of the city of Redding Zoning Ordinance.

Now, the Shasta Association of Realtors will ask Anderson, Shasta Lake City and Shasta County to follow Redding’s lead by adopting reasonable second unit rules. Realtors believe construction of second units should be encouraged in response to public demands for more affordable housing alternatives.

Redding already attracts many retirees from elsewhere due to its low crime, recreational opportunities and affordable real estate. Allowing them to build a second residence for a caregiver or family member without lots of  “red tape” will encourage them to move here or stay here when their needs change. Hopefully, the word will get out and more property owners will take advantage of these new and improved rules for granny flats!

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

NEARLY 30 YEARS LOCAL REAL ESTATE EXPERIENCE

Hawaii came in second in the credit score ratings at 751. States in the northeast did well while the lowest credit scores were found in the Southeast region. Mississippi had the lowest average credit score at 695.

I suspect Redding/Shasta County avearge may be lower than California as a whole. The collapse in real estate prices locally in conjunction with double-digit unemployment and conversations with local lenders lead me to believe  the average here is significantly lower.

Today, many homeowners with good jobs and credit are wrestling with the idea of strategic defaults on loans for their primary homes, second homes and investment properties. A strategic default is defined as a borrower who elects to walk away from their property because the mortgage is underwater, not because of any financial hardship.

As one mortgage industry expert points out in the article, Californians have managed to weather the wave of foreclosures and precipitous price drops without serious damage to their credit ratings. Let’s hope this trend continues!

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

NEARLY 30 YEARS LOCAL REAL ESTATE SALES EXPERIENCE