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
March 7, 2017

Shasta County Market Update - March 2017

Hottest Topics Trending Now in Shasta County...

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


Shasta County Home Inventory Down by Nearly 25%
Home sales were down by just under 10% last month compared to the same month last year. I have included the reports from the local Shasta County MLS.

Pending listings are also down slightly as you can see by the report below.

A good look at the active listings here in Shasta County really explains why pending and home sales are down this year.

There are a few reasons why this is taking place. If we look at the big picture over the past five years, the one thing that has started to change - and dramatically at this point - is the amount of of distressed property sales that are no longer coming to the market. In years past we’ve had many more foreclosures and short sales which supplied the market with inventory. This gave both investors and home-buyers opportunities to purchase. However, now that foreclosures have dropped and there are fewer distressed properties, this naturally translates into fewer listings and fewer home sales.
 
Lack of New Construction
Here in Shasta County we still don’t have enough new construction being developed. The largest reason is that home prices have not moved up high enough yet to allow builders to acquire property, pay the fees associated with developing that property and still realize a small or modest profit. The amount of new construction being built is not keeping up with the demand in the market for new homes.
 
Home Appreciation
Current homeowners can expect to see their homes appreciate over the next few years. This gain in equity is necessary for them to sell their property and move up to a larger home or downsize. With appreciation we will see two things take place:

  1. Equity sellers will be entering the market to sell their properties.
  2. New construction will start once the spring and summer months are here.

Bottom Line
If you have any questions about the real estate market here in Redding or Shasta County, please feel free to give me a call at 530-222-3800. 

Make it a great day!

Posted in Josh's Blog
Feb. 16, 2017

Great News for Redding Homeowners

Attention Redding Homeowners!

Recently there has been a lot of talk about Redding home prices and if they are accelerating too quickly. As we've mentioned before, properties for sale simply cannot keep up with the number of buyers actively searching for a home. This fact holds true here in Shasta County as well, which has caused home prices to rise.

Check your Home Value INSTANTLY!

For those who are worried that we are doomed to repeat 2006 all over again, it is important to note that homeowners are investing their new-found equity back into their homes and themselves, not in depreciating assets. In addition, lending practices today are much stronger than in past years.

The added equity is helping many Redding families put their children through college, invest in starting small businesses, allowing them to pay off their mortgage sooner or move up to the home that will better suit their needs now.

Bottom Line
If you are a homeowner looking to take advantage of your homes equity by moving up to your dream home, let's get together to discuss your options! Call 530-222-3800 to set up an appointment or email me at josh@reddinghomes.com.

Posted in Josh's Blog
Feb. 15, 2017

List Now and Attract More Serious Buyers



 

A recent study of more than 7 million home sales over the past four years revealed that the season in which a home is listed may be able to shed some light on the likelihood that the home will sell for more than asking price, as well as how quickly the sale will close.

It’s no surprise that listing a home for sale in Redding during the spring saw the largest return, as the spring is traditionally the busiest season for real estate. What is surprising, though, is that listing during the winter came in a very close second!

“Among spring listings, 18.7 percent of homes fetched above asking, with winter listings not far behind at 17.5 percent. While 48.0 percent of homes listed in spring sold within 30 days, 46.2 percent of homes in winter did the same.”

The study goes on to say that:

“Buyers [in the winter] often need to move, so they’re much less likely to make a lowball offer and they’ll often want to close quickly — two things that can make the sale much smoother.”

Bottom Line
If you are debating listing your home for sale in 2017, keep in mind that the spring is when most other homeowners will decide to list their homes as well. Listing your home this winter will ensure that you have the best exposure to the serious buyers who are out looking now!

It may make sense to beat the rush of housing inventory that will enter the market in the spring and list your home today. If you have any questions about selling your home please contact me at the office 530-222-3800 or email josh@reddinghomes.com.

Posted in Josh's Blog