June 16, 2017

4 Reasons to Buy in Redding This Summer!

 

4 Reasons to Buy in Redding This Summer

Here are four great reasons to consider buying a home in Redding today, instead of waiting.

1. Home Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 7.1% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.9% over the next year.

The bottom in home prices has come and gone and Shasta County home values will continue to appreciate for years to come. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You are Paying a Mortgage
There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage - either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you? 

4. It’s Time to Move on with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy. See all Shasta County homes for sale at www.reddinghomes.com

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings. Call 530-222-3800 or email josh@reddinghomes.com with any questions you have regarding the Shasta County Real Estate Market.

Posted in Josh's Blog
June 8, 2017

Shasta County Market Update - June 2017

Click Here to watch Josh's video blog for the month of June


From the desk of Josh Barker at RE/MAX
First and foremost I hope all of you are well and off to a great start this summer! The lakes are full, we are surrounded by snow capped mountains, and the weather is amazing. This month we will be sharing several of the hottest topics trending now in Shasta County. If you have any questions please feel free to contact me.

Your Realtor,
Josh Barker

Shasta County Home Sales
Summer is here and the Redding real estate market continues to move at a hot pace. In fact, the total number of home sales year-to-date are very similar to the number of sales last year. The year-to-date numbers show that 1188 homes closed escrow so far in 2017. Last year, 1192 homes closed escrow by the same point. The numbers prove that the local housing market is performing very similar to last year. 

NEW LISTINGS
We experienced a jump of over 15% in new listings coming to the market during the month of May compared to last year. This trend was expected since we had an unusually long rainy season this year which caused many homeowners to delay putting their homes on the market. 

2016 vs 2017 Home Sales
The Shasta County real estate market is performing almost identical to last year in regards to sales and inventory. However, one significant change is the average sales price. Over the past year the average home sale price has increased over 5% to $271k, up from $257k a year ago. Many sellers have experienced fewer days on the market this year due to a lower inventory of homes for sale. Our local Shasta County Board of Realtors produces a report showing the average list prices as you can see below. 

  

You can check the value of your home instantly at
www.reddinghomes.com/cma/property-valuation

NEW CONSTRUCTION 
New construction in Shasta County has picked up this year compared to last year. Anderson Ca, has experienced a noticeable increase in housing starts over years past. This is partly due to the pro growth agenda of the city of Anderson reflected in its permit fees. The city of Redding has also experienced an increase in permits pulled year to date compared to last year. 

You can view all new homes for sale at www.reddinghomes.com.

  

The largest challenge for home builders currently is making the math work. Land acquisition, development cost including design and engineering, permits and fees, and of course material and labor all cost much more than in years past. Existing home prices are simply not high enough to allow builders to take risk and develop at any meaningful level. As home prices inch forward, you can expect this trend to slowly change.  

BOTTOM LINE
The number of homes listed for sale this year and the number of homes selling this year are nearly identical to last year. The average sales price has increased by over 5% compared to last year. Although new construction numbers are up over 2016, the numbers are still much lower than anticipated. 

If you have any questions regarding our local real estate market, please feel free to give me a call at 530-222-3800 or email me at josh@reddinghomes.com.

Posted in Josh's Blog
June 1, 2017

#1 Reason to List Your Home in Redding

If you are debating listing your house for sale in Redding this year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes for Sale 

The National Association of REALTORS’ (NAR) Chief Economist Lawrence Yun recently commented on the inventory:

“Last month’s dip in closings was somewhat expected given that there was such a strong sales increase in March. New and existing inventory is not keeping up with the fast pace homes are coming off the market."

The latest Existing Home Sales Report shows that there is currently a 4.2-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market, and 4.6% lower than a year ago.

See all homes currently for sale in Redding and Shasta County at www.reddinghomes.com

The chart below details the year-over-year inventory shortages experienced over the last 12 months:

Anything less than a six-month supply is considered a “seller’s market”.

Bottom Line
If you've thought of listing your home in Redding for sale, let's get together and discuss the supply conditions in your specific neighborhood. We will assist in gaining access to the buyers who are ready, willing and able to buy now! Please feel free to contact me at 530-222-3800 or email me directly at josh@reddinghomes.com.

Posted in Josh's Blog
May 23, 2017

New Construction in Redding

Redding and Shasta County New Construction

The biggest challenge to Redding's housing market is the shortage of inventory for sale. A typical market would see a six-month supply of homes for sale. Currently, that number is below four months. This is the major reason Shasta County home prices have continued to appreciate at higher levels than historic averages.

INSTANT HOME VALUATION
Check the value of your home instantly at www.reddinghomes.com/cma/property-valuation

The good news is that builders are now starting to build more homes in lower price ranges. As you can see below, the City of Redding Building Division permit report shows that 2017 is off to a good start.

City of Redding New Construction

Builder Confidence is Up
The Housing Market Index from the National Association of Home Builders (NAHB) reveals that builder confidence increased last month. HousingWire quoted NAHB Chief Economist Robert Dietz about the reason for the increase in confidence amongst builders.

“The HMI measure of future sales conditions reached its highest level since June 2005,
a sign of growing consumer confidence in the new home market.
Especially as existing home inventory remains tight, we can
expect increased demand for new construction moving forward.”

Builders are Meeting the Needs of Today’s Purchaser
Builders are not only jumping into the market – they are doing a better job of matching current demand. The Wall Street Journal recently reported. We can see that same trend happening here in Shasta County, with developments like Shastina Ranches among others we can expect to see new construction continue through the summer and fall.

 

The graph below compares 2016 to 2017 new construction sales by price point. As we can see, builders are slowly beginning to shift to prices more favorable to the first-time and non-luxury buyer.

Redding and Shasta County New Home Sales Prices

Bottom Line
There is a drastic need for a larger supply of home inventory to meet the skyrocketing demand, and builders are finally doing their part to help rectify this situation. Some homeowners will begin thinking of selling their current home to move-up to a newer home. This will help those first-time home buyers find a house suitable for their needs and price point. Check out what's for sale right now at www.reddinghomes.com

Posted in Josh's Blog
May 5, 2017

Shasta County Market Update - May 2017

Click Here to watch Josh's video blog for the month of May


Average Home Values on the Rise in Shasta County

Shasta County Home Sales
In April, home sales were down by 12.5% compared to the same month last year. (See slide below). This change is largely due to the reduction of distressed and foreclosure listings available.

 Shasta County Sold Listings - May 2017 

Currently there is a shortage of active homes listed for sale. In fact, in Shasta County home inventory is down by over 21%. Naturally when buyers have fewer homes to choose from, fewer transactions take place. As more listings come to the market in the later spring and early summer months, overall sales are projected to increase as well.

Shasta County Active Listings - May 2017

Home Price Changes Over the Past 10 Years

The graph below illustrates how the real estate market in Shasta County has performed over the past 10 years. The dramatic dip in 2012 represents the bottom of the market and the lowest home prices in 13 years. Currently, homes are selling for similar prices that were available in 2008.

The larger markets in Sacramento, the Bay Area and Southern California have already surpassed their previous peak values. In Redding and Shasta County, home values haven’t reached their previous 2006 peak. However, home values are projected to steadily increase going forward. Check the value of your home INSTANTLY with our industry leading Home Valuation Tool at www.reddinghomes.com/cma/property-valuation.

See all current Shasta County Listings at www.reddinghomes.com

If you have any questions regarding Shasta County real estate please feel free to contact me at 530-222-3800 or email josh@reddinghomes.com.

Have a great Spring!

Your Realtor,
Josh Barker

Posted in Josh's Blog
April 19, 2017

Thinking of Selling Your Home in Redding?

Thinking of Selling? New Is the Time to Act

If you have thought about selling your house in Redding this year, now may be the time to do it. The inventory of homes for sale in Shasta County is well below historic levels and buyer demand is skyrocketing. The best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market. As you can see by the slide below, Shasta County housing inventory for the month of April was down by 21% compared to last year.

Jonathan Smoke, Chief Economist at realtor.com, revealed in a recent article that:

“The biggest challenge to buyers this spring will be simply finding a home to buy
and getting it successfully under contract. That’s because the supply of homes
for sale is at an all-time low, and yet demand is strong and getting stronger.”

Smoke goes on to say:

“We started the year with the lowest inventory of homes available for sale we’ve ever seen.
We did see inventory grow 2% in February, total inventory was down 11% over last year.”

In this type of market, a seller may have a major negotiating advantage when it comes to price and other aspects of the real estate transaction including the inspection, appraisal and financing contingencies.

Bottom Line
As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas. If you have questions about potentially selling your home in Redding, please feel free to give me a call at 530-222-3800. We have lots of information on our website at www.reddinghomes.com/selling-your-home/.

Posted in Josh's Blog
April 11, 2017

Using a Professional to Sell Your Home

When a homeowner decides to sell their house, they obviously want the best possible price for it with the least amount of hassles along the way. However, for the vast majority of sellers in Redding, the most important result is actually getting their homes sold.

In order to accomplish all three goals, a seller should realize the importance of using a local real estate professional. We realize that technology has changed the purchaser’s behavior during the home buying process. According to the National Association of Realtors’ 2016 Profile of Home Buyers & Sellers, the percentage of buyers who used the internet in their home search increased to 94%.

The report also revealed that 96% of buyers who used the internet when searching for homes purchased their homes through either a real estate agent/broker or from a builder or builder’s agent. Only 2% purchased their homes directly from a seller whom the buyer didn’t know.

The plethora of information now available has resulted in an increase in the percentage of buyers that reach out to real estate professionals to “connect the dots.” This is obvious, as the percentage of overall buyers who have used agents to buy their homes has steadily increased from 69% in 2001.

If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process. If you're ready to sell your home, please contact me at 530-222-3800 and visit our website at www.reddinghomes.com/selling-your-home for more information. 

Posted in Josh's Blog
April 7, 2017

Shasta County Market Update - April 2017

Click Here to watch Josh's video blog for the month of April


"How is the real estate market performing?"
I get asked this question often, and my typical response is "What price range are you referring to?". The local real estate market does not perform the same across all price ranges. For example, if you look in the upper end of the market there is still larger inventory and fewer transactions taking place which translates into more of a ‘buyers’ market. When you move down to the lower price ranges we start to see those inventories shrink due to fewer foreclosures and distressed properties. At the same time we are also experiencing a very strong buyer demand in these areas which lead to more competition, multiple offers, and in some cases homes are being ‘bid up’ over asking price.

Lower Inventory of Homes For Sale
Foreclosures and distressed properties in the market have continually trended down since its peak in 2012 (see slide below). These sales account for less than 7% of all transactions nationwide, and closer to 4% here in Shasta County. When foreclosures went away it also affected the inventory of homes for sale, specifically in the lower price ranges. See all current foreclosures at www.reddinghomes.com/foreclosures

Shasta County Foreclosures

Until new construction picks up to any meaningful level we will continue to experience lower inventories. This means a tighter market for buyers in the lower price ranges as well as shorter days on the market. Some homes will see competing offers right away.

Local Home Sales Report
Shasta County home sales in March were on par with the same time last year, with very similar amount of properties closing escrow, despite the lower inventories. We did experience an increase in pending properties which went under contract last month. The latest report from the Shasta County MLS shows sales are up by 14% over the same time last year.

Shasta County - Pending Listings

The bigger problem comes when we take a look at the active listings. There are currently 803 homes for sale, compared to over 1,000 at this time last year. This calculates into a 21% decrease in inventory across the board. With sales up by 14%, we are starting to see a much tighter market in regards to the lower end price ranges, and why some homes are selling so quickly.

Shasta County - Active Listings

Selling Your Home in Today's Market
Homeowners selling in the upper end price ranges should understand it is currently a "buyers market" in many ways. There are a lot of things to be done to market and promote a home properly and successfully. In the lower end price range sellers will see stronger buyer demand for their home and likely multiple offers on the property. Managing those offers properly can help in negotiating the highest possible price for the home. It also gives the sellers an opportunity to select the most qualified buyer, thus reducing the chances of falling out of escrow. For more information please visit www.reddinghomes.com/selling-your-home.

Thinking of selling?
Check the value of your home INSTANTLY!
INSTANT HOME VALUATION

Strategies for Buyers
Buying a home in the lower end of the market will pose some definite challenges. We have developed some of our own strategies, that we share with our buyers, which give them a great chance of beating out the competition in multiple offer scenarios. These strategies don’t cost you more money, or increase your risk, they are designed to be received in the best manner by the homeowner. 

If you’d like to learn more about our marketing strategies and tips to make a strong competitive offer in today’s hot market, or questions regarding our local market please feel free to give me a call at 530-222-3800 or email me at josh@reddinghomes.com.

Have a great Spring!
Your Realtor,

Josh Barker 

Posted in Josh's Blog
March 21, 2017

4 Reasons to Buy in Redding This Spring!

Buy in Redding This Spring!

Here are four great reasons to consider buying a home today instead of waiting.

1. Redding Home Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.9% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.8% over the next year.

The bottom in home prices has come and gone. Redding and Shasta County home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4% over the last couple months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by at least a half a percentage point this time next year.

An increase in rates WILL impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You are Paying a Mortgage 
There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage - either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

GET AN INSTANT PROPERTY VALUATION
www.shastahomevalue.com

4. It’s Time to Move on with Your Life
The ‘cost’ of a home is determined by two major components:

  • Price of the home
  • Current mortgage rate

It appears that both are on the rise... But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings. You can contact me by calling 530-222-3800 or email me at josh@reddinghomes.com.

Have a fantastic start to Spring!

Your Realtor,
Josh Barker

Posted in Josh's Blog
March 14, 2017

Redding Housing Market Expected to “Spring Forward”

Redding Housing Market Expected to Spring Forward

Just like our clocks sprung forward this past weekend, the housing market will soon “spring forward” as well. In Redding and Shasta County the lack of inventory available for sale right now is what is holding back the market. However, we have started to see those inventories trend upward in the past few weeks, and will continue to increase over the next few months.

Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right. Buyer demand typically has seasonality to it, which usually falls off in the winter months.

That has not happened this year...

Demand for housing in Redding and surrounding areas has remained strong as mortgage rates have been near historic lows for some time now. Those who act quickly and list now could benefit greatly from additional exposure to buyers prior to a flood of more competition coming to market in the next few months.

www.reddinghomes.com/selling-your-home/

Bottom Line

If you are planning on selling your home in Redding or Shasta County this year, let’s get together to evaluate the opportunities in our local housing market. Feel free to call Josh at 530-222-3800 or email josh@reddinghomes.com.

Posted in Josh's Blog