Every year around this time in Shasta County, we take time to reflect and plan for next year. If you are renting your current home but have dreams of homeownership, your plan for the new year may include buying, and you wouldn’t be alone!
According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying in the next 5 years, with 38% planning to buy in the next 2 years!
When those same renters were asked why they disliked renting, 52% said that rising rental costs were their top reason, and 42% of renters believe that their rent will rise every year. The full results of the survey can be seen below:
It’s no wonder that rising rental costs came in as the top answer! The median asking rent price has risen steadily over the last 30 years, as you can see below!
There is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. With nearly half of renters (48%) surveyed already spending more than that, and with their rents likely to rise again… why are they renting?
When asked why they haven’t purchased a home yet, not having enough saved for a down payment (44%) came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”
If the majority of those who believe they haven’t saved a large enough down payment believe that they need 20% down to buy, that means a large number of renters may be able to buy now!
If you are one of the many renters who is fed up with rising rents but may be confused about what is required to buy in today’s market, let’s get together to help you on your path to homeownership. As always, we here at Josh Barker Real Estate Advisors are here to help answer any questions you may have about buying or selling homes here in Redding and Shasta County. Feel free to give us a call at 530-222-3800 or email me at firstname.lastname@example.org.
National home prices have increased by 5.4% since this time last year. Over that same time period, interest rates have remained near historic lows which has allowed many buyers to enter the market and lock in low rates.
As a seller in Shasta County, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price but instead about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Insights Report, home prices will appreciate by 4.8% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan. As always, we here at Josh Barker Real Estate Advisors are here to help answer any questions you may have about buying or selling homes here in Redding and Shasta County. Feel free to give us a call at 530-222-3800 or email me at email@example.com.
The interest rate you pay on your home mortgage in Shasta County has a direct impact on your monthly payment. The higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.
Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily throughout 2019.
How Will This Impact Your Mortgage Payment?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly. But don’t let the prediction that rates will increase stop you from purchasing your dream home this year!
Let’s take a look at a historical view of interest rates over the last 45 years.
Be thankful that you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago. As always, we here at Josh Barker Real Estate Advisors are here to help answer any questions you may have about buying or selling homes here in Redding and Shasta County. Feel free to give us a call at 530-222-3800 or email me at firstname.lastname@example.org.
Here are four great reasons to consider buying a home in Shasta County today instead of waiting.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Insight report revealed that home prices have appreciated by 5.6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.7% over the next year.
The bottom in home prices has come and gone. 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 hovered around 4.8%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase in 2019.
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 homes 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 building 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.
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.
As always, we here at Josh Barker Real Estate Advisors are here to help answer any questions you may have about buying or selling homes here in Redding and Shasta County. Feel free to give us a call at 530-222-3800 or email me at email@example.com.
Click Here to watch Josh's video blog for the month of December.
From The Desk Of Josh Barker @ RE/MAX
The average sales price for a home in the month of November was $286,000 up from $274,000 in November of last year. This overall increase in the average sales price has put many of the remaining underwater mortgages out of the red and back into positive equity positions. Although the market price for a home is clearly up over last year, home prices are still an average of 10% below the average prices of 2006 when the market was at its all-time high. Home price appreciation is expected to continue to rise in 2019 and at a slower pace than in 2018. The largest impact on this projection will be the increase in buyer demand due to "fire-related buyers" that Shasta County may receive from the Paradise area.
Interest rates have crossed over the 5% range in the past several months and all projections point to an even higher interest rate environment in the near future. The Federal Reserve who carries the most weight in mortgage rate pricing has stated that they intend to raise the interest rate several more times in 2019, provided the economy continues to grow. As mortgage rates increase, many on the edge of being able to qualify - risk being priced out of the market which could have the largest impact on sales volume in 2019.
The number of homes available for sale in Shasta County currently is hovering around 1,035 homes for sale up from 1,020 one year ago. The stability in the number of homes for sale will likely keep prices in check and prevent any major run-up in home prices. New listings coming to the market in the month of November was up by 30% compared to last November which is welcomed news for many buyers that are currently searching for a home.
Buyer demand in Shasta County is considered strong by nearly every account and with the addition of "fire-related buyers" in the market, we expect this trend to remain consistent throughout the winter months. This winter season, unlike previous winter seasons, we do not anticipate to see a significant slow down in sales volume. There are simply too many buyers in need of housing due to the fires to see our traditional seasonal slowdown.
New construction in Shasta County is trending up. With multiple new subdivisions coming to the market, expansion of existing subdivisions, and fire related new construction, it is expected that 2019 will likely be our busiest year for new construction since 2007. The cost of new construction is also rising quickly as well. Prior to the fires, an average entry level home cost an average of approximately $150 per foot to construct. Currently, these same entry level homes can cost in excess of $185 per foot to build. We have been receiving reports of custom home construction costing in excess of $230 per foot to construct. The cost of new construction will likely become a major barrier for new home development in the future if prices are not held in check.
Many online companies, as well as several local companies, are boasting of an "Instant offer solution to selling a home". Though these programs can be understandably attractive, keep in mind that no company is in the business of losing money. This means that for those who participate, it could be expected that a person could leave thousands of dollars on the table. In most cases, this program is designed to "get in the front door" and then "bait and switch" a person to a more equitable solution. In either case, this is not a recommended way to start the process of selling a home for the highest price, which in many cases is your most valuable asset. You decide...
In closing and on behalf of all of us here at Josh Barker Real Estate Advisers, thank you for all of your amazing referrals and support throughout this past year. We wish all of you a tremendous Holiday Season and a Happy New Year!
P.S. Our office proudly participates in TOYS for TOTS each year. This year is especially important as many families have lost their homes and of course their children lost everything as well. If you would like to participate, simply drop off a new unwrapped toy at our office valued at $10.00 or more prior to December 18th, and we will make sure that it gets to a special child in need.
As always, if you have any questions, please feel free to respond to this email or contact me at 530-222-3800.
Many sellers in Shasta County believe that spring is the best time to place their homes on the market because buyer demand traditionally increases at that time of year, but what they don’t realize is that if every homeowner believes the same thing, then that is when they will have the most competition!
The #1 Reason to List Your Home in the Winter Months is Less Competition!
Housing supply traditionally shrinks at this time of year, so the choices buyers have will be limited. The chart below was created using the months’ supply of listings from the National Association of Realtors.
As you can see, the ‘sweet spot’ to list your home for the most exposure naturally occurs in the late fall and winter months (November – February).
Temperatures aren’t the only thing that heats up in the spring – so do listings!
In 2017, listings increased by nearly half a million houses from December to June. Don’t wait for these listings to come to market before you decide to list your house.
Added Bonus: Only Serious Buyers Are Out in the Winter
At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere ‘lookers.’ The lookers are at the mall or online doing their holiday shopping.
If you have been debating whether or not to sell your home and are curious about market conditions in your area, let’s get together to help you decide the best time to list your house for sale. As always, we here at Josh Barker Real Estate Advisors are here to help answer any questions you may have about buying or selling homes here in Redding and Shasta County. Feel free to give us a call at 530-222-3800 or email me at firstname.lastname@example.org.
According to a recent report by ATTOM Data Solutions, home sellers who sold their homes in the third quarter of 2018 benefited from rising home prices and netted an average of $61,232.
This is the highest average price gain since the second quarter of 2007 and represents a 32% return on the original purchase prices.
After the Great Recession, many homeowners were left in negative equity situations but home price appreciation in the recovery period since then has given homeowners something to smile about.
The results from ATTOM fall right in line with data from the latest edition of the National Association of Realtors’ (NAR) Profile of Home Buyers and Sellers. Below is a chart that was created using NAR’s data to show the percentage of equity that homeowners earned at the time of sale based on when they purchased their homes.
Even though those who purchased at the peak of the market netted less than those who bought before and after the peak, the good news is that there was a double-digit profit to be had! Many homeowners believe that they are still underwater which has led many of them to not even consider selling their houses.
If you are curious about how much equity you’d earn if you sold your home, let’s get together to perform an equity review and determine the demand for your home in today’s market! As always, we here at Josh Barker Real Estate Advisors are here to help answer any questions you may have about buying or selling homes here in Redding and Shasta County. Feel free to give us a call at 530-222-3800 or email me at email@example.com.
Click Here to watch Josh's video blog for the month of November.
From The Desk Of Josh Barker @ RE/MAX
First and foremost, we want to take a moment and send our thoughts and prayers to all of those that have been impacted by the Camp Fire in the Paradise area south of Shasta County. With all the fires the North State has experienced this year, families will need all of our support more than ever this holiday season.
Monthly Sales Report
The month of October revealed some promising numbers compared to September. Sales for the month of October finished with just over 300 homes sold compared to 284 sales in October of last year. The increase in sales compared to last year can be largely contributed to the increase of homebuyers shopping in the local market due to the CARR fire. A large number of those who lost a home to the fire have elected to purchase another home. As these home buyers solve their immediate housing needs we expect home sales will likely return to normal levels by the end of this year.
Interest rates play a major role in overall affordability in real estate markets like ours in Shasta County. Rates have a large impact in areas like ours because the vast majority of local home buyers purchase homes with financing. As the rate goes up, the loan amount a buyer qualifies for goes down. A simple way to explain the relationship is like this...For every 1% that the interest rate increases, the loan amount a buyer qualifies for goes down by an average of 10%. Due to a strong economy including job and wage growth, the federal reserve is expected to continue to raise the interest rates in the short term.
Home prices are up over last year with an estimated 5% growth in home values over the past year. Due to the lack of major wage or job growth, the local market has not appreciated as high as other markets throughout the state. Both the number of jobs and wages paid for jobs has an impact on how quickly home values can raise in a market like Shasta County. The forecast of home appreciation in the Shasta County market for the next 12 months is 4% according to several of the largest housing economists. Interest rates could have an impact on home appreciation and will likely be the number one factor on the accuracy of this projection. You can check the approximate value of your home instantly by clicking here.
Home Rebuilds / CARR fire
With over 1,000 residences lost in the car fire, many locals know someone impacted by the fire. One of the frequent questions we receive is "How many people are going to rebuild". Although we are a ways off from being able to determine the exact number, there are some trends that are emerging. For example:
Those who lost a home in locations where the cost of rebuilding is challenging due to topography--which is a large number due to the mountainous topography the fire burned through--may decide not to rebuild.
Those who lost a home on acreage property where the land and trees around them have been devastated may decide not to rebuild.
Those who were considering a move prior to the fire may decide not to rebuild.
Those who do not want to wait the estimated time it will take to rebuild will likely not rebuild.
Those who do not desire to go through the process of rebuilding will likely sell their vacant home sites.
Many of the vacant home sites will be purchased by local contractors, developed and resold over the next several years adding additional housing to the market.
Although the number of people that decide not to rebuild may reach as high as 50%, this will likely not have a major impact on the housing market in the long term.
Home prices have increased an average of 5% over the past 12 months. The majority of this home appreciation is focused on the $500k and below price range. Home sales for the month of October were recorded at just over 300, which is up from 284 one year ago. The next 12-month home value appreciation projection is estimated at 4%, but this number could be impacted if mortgage interest rates rise faster than wages or job growth can account for.
As always, if you have any questions, please feel free to respond to this email or contact me at 530-222-3800.
A considerable number of potential buyers in Shasta County shy away from jumping into the real estate market due to their uncertainties about the buying process. A specific cause for concern tends to be mortgage qualification.
For many, the mortgage process can be scary, but it doesn’t have to be!
In order to qualify in today’s market, you’ll need a down payment (the average down payment on all loans last year was 5%, with many buyers putting down 3% or less), a stable income, and good credit history.
Throughout the entire home buying process, you will interact with many different professionals who will all perform necessary roles. These professionals are also valuable resources for you.
Once you’re ready to apply, here are 5 easy steps that Freddie Mac suggests to follow:
Find out your current credit history & score – even if you don’t have perfect credit, you may already qualify for a loan. The average FICO Score® of all closed loans in September was 731, according to Ellie Mae.
Start gathering all of your documentation – income verification (such as W-2 forms or tax returns), credit history, and assets (such as bank statements to verify your savings).
Contact a professional – your real estate agent will be able to recommend a loan officer who can help you develop a spending plan, as well as help you determine how much home you can afford.
Consult with your lender – he or she will review your income, expenses, and financial goals in order to determine the type and amount of mortgage you qualify for.
Talk to your lender about pre-approval – a pre-approval letter provides an estimate of what you might be able to borrow (provided your financial status doesn’t change) and demonstrates to home sellers that you are serious about buying!
Do your research, reach out to professionals, stick to your budget, and be sure that you are ready to take on the financial responsibilities of becoming a homeowner. As always, we here at Josh Barker Real Estate Advisors are here to help answer any questions you may have about buying or selling homes here in Redding and Shasta County. Feel free to give us a call at 530-222-3800 or email me at firstname.lastname@example.org.
There are many unsubstantiated theories about what is happening with home prices. From those who are worried that prices are falling (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance” (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.
However, the increase in prices is easily explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase. It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything greater than seven months will cause prices to depreciate (see chart below).
According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes for sale has been below six months for the last five years (see chart below).
If buyer demand continues to outpace the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should. As always, we here at Josh Barker Real Estate Advisors are here to help answer any questions you may have about buying or selling homes here in Redding and Shasta County. Feel free to give us a call at 530-222-3800 or email me at email@example.com.
December 5, 2015 From the first day to the last the whole process went AWESOME!!! Buying a home can be very stressful but JOsh Barker's team was always there to make sure things went smoothly!!! If you find yourself in the market to buy or sell I feel you won't go wrong with this professional team. Thanks for helping my wife and I. God Bless! -Howie Groen
December 4, 2015 I was impressed when I met with Josh to sell our home. He made lots of promises on his service, was extremely knowledgeable. Once we started the sales process, he delivered on everything he told us he would do. He and his staff are amazing. They keep regular contact with you from start to finish. The are prompt in any situation that arises. They made the stress of selling a home so much easier. I would recommend Josh Barker to anyone that is selling their home. Deborah & John MacGillivray
November 30, 2015 Very easy to work with. Our home sold in 10 days! Kept us informed from start to finish! Staff was always friendly and informative. You will not regret choosing Josh Barker for your realtor. Josh also recommended a wonderful window cleaner and carpet cleaner. We even sold our home for more then asking price! -Bruce and Lynn S.
November 20, 2015 Josh Barker and his associates are simply the best! I've bought and sold 4 houses, using different realtors for each transactions. But I will only go with Josh Barker for all my future real estate needs! He is very knowledgeable, friendly, and prompt. He got our house sold for top dollar in just a few weeks. Thanks for everything! -Jennifer A.
November 13, 2015 We were very happy with the service and knowledge that Josh Barker and his team brought to the table in our real estate negotiations. We are confident that with out Josh we would have paid significantly more for the property, would not have been as well informed regarding the property and then tenants therein, and that this would have been a different transaction all together. Even after the close of escrow Josh and his team have continued to help us out with questions to the former owner. We heartily recommend Josh for all of our real estate needs. Alan K.
November 10, 2015 I have rarely had the pleasure to do business with such a team of professionals. Josh met with me personally to explain how the members of his staff would work together with my wife and I to come to a successful conclusion in the sale of our home. Each member of this organization had specific responsibilities in the sale process, and each and everyone did their job to perfection. It is gratifying to find a group of people that are so dedicated to their clients. I heartily recommend Josh Barker for all your Real Estate needs. -Gordy S.
November 9, 2015 Josh came highly recommended and it was clear right away that he has a high level of expertise and professionalism in his field. He was very attentive to our needs, detail oriented and knows the local market quite well. His online strategy of showing our home and getting the most quality views possible was definitely encouraging and exciting! He has assembled a quality, friendly and professional staff who helped make our home selling experience an easy and smooth one. There is no doubt that we will be using Josh and his tea for our future real estate ventures. It was a joy to work with them!!- Paul M.
November 9, 2015 Josh Barker and his entire team are amazing! They are on the ball every minute and they don't miss a beat. They treat us so well that they feel like family. We will never choose anyone else for our real estate needs! Josh gets your home sold asap! Couldn't be happier! -Jennifer M.
November 3, 2015 Josh has my highest recommendation. Our home was listed for 6 months with no offers. We retained Josh and thanks to his knowledge, exposure to many websites and his expertise, within weeks we received multiple offers. The great thing about Josh and his team, is you have the personal attention of having a small town real estate agent, like a friend, but the talent and professionalism and knowledge of a big city Broker combined into one, that is rare! If you want your home sold, call Josh and his team, they are a delight to work with. -Sara C.
November 2, 2015 To Josh Barker and his team, I cannot thank you enough for all your hard work and dedication in selling my home. You and your team were professional, knowledgeable and responsive throughout the whole transaction. Josh, I always felt you had my best interest at heart and you made a potentially difficult process extremely easy. From start to finish the service I received was nothing short of excellent. I will definitely be referring anyone I know looking to buy or sell a home because you are without a doubt the best realtor I know!
October 30, 2015
Josh Barker and his team are by far the most professional Real Estate Company in the North State. We have used Josh Barker on multiple house buying and selling transactions. Not only does Josh listen attentively, but he sincerely cares about helping you find the exact house that fits your lifestyle/needs. He is a fair negotiator and you can fully trust that he will give you accurate advice and information from all angles. His staff is prompt, friendly, and they have excellent and timely follow through both on the phone and via email. Josh and his staff keep you updated along the way and you never have to worry about them forgetting any detail. Josh Barker is second to none! Whether you are listing or selling, Josh Barker will make sure you are taken care of 100%. -Alana O.
October 29, 2015 Josh Barker has an incredible team that makes his office a huge success. When I had a questions or a need, it was answered promptly and cordially by one of the team members. This office will go above and beyond what is considered "normal practices" to make the process of buying or selling a home a breeze. Through excellent negotiations, we were able to sell our home for our asking price within one wee! This office has been a part of my life for the past 7 weeks and will be sorely missed. -Marty and Sharl L.
October 21, 2015 I would like to give a huge thank you to Josh Barker and his entire company for helping me with my recent home purchase. It is clear that Josh is passionate about what he does and extremely knowledgeable. Finding the right home felt stressful at times but Josh was always available for all of my questions. The entire company went above and beyond throughout the whole process. Josh has sold several homes for my family and friends with great success so working with Josh was an easy decision. -Brian M.
October 20, 2015 I have already recommend Josh Barker to several friends. His office was extremely professional, punctual, informative and helped us quickly sell our home for a great price. Thank you Josh and team! -April L.
October 14, 2015 From the beginning of the process to the end, Josh and his team were exemplary. Each team member knew their job and handled it with nothing but true professionalism. I will definitely recommend Josh and his team to my friends and family
October 8, 2015 It was both a professional blessing and an honor to have worked with Josh Barker and his team. When it came time to sell our house, a dear friend highly recommended Josh Barker. Following his advice, we called Josh. First impressions go along way, he was very impressive as well as very professional. Josh certainly did his homework determining the financial specifications of the housing market in our neighborhood. It was quite evident that the Lord was working through Josh. When God is for us, who can be against us. Trust in the Lord with all your heart, lean not on your own understanding, acknowledge Him in all your ways and He will make your paths straight. To that end, I would highly recommend services of Josh Barker Realty, only wish I had another house to sell. God Bless. -Phil and Diane Richardson
September 28, 2015 Josh (and his team of professionals) was outstanding! We were very impressed with the communication throughout the process of listing and closing the sale of our duplex in Redding...and we live in Santa Rosa!! Josh's insight, knowledge and personal attention was much appreciated. We would very definitely recommend Josh with no doubt or hesitation. -Bob and Fiona V.
September 14, 2015 We were so pleased with the service provided by Josh and his team. We interviewed three realtors prior to signing with Josh and selected him based upon his knowledge of the market and strategy for promoting the property both locally and outside Shasta County. Josh emphasized his team approach and communications with his clients. The house sold in seven days and escrow went without a hitch. I've bought and sold 10 properties and this transaction was by far the most seamless. Thanks Josh and your team of professionals! -John and Christina B.
September 11, 2015 Over the past 3 years, we have utilized Josh's outstanding services to sell 2 homes and purchase another. Josh is the consummate professional who truly has his clients best interest at heart. In addition, Josh has built an amazing team of real estate professionals who made themselves available through our transaction process. When it comes to real estate, my wife and I are confident that Josh and his team will always be our first call. -Richard M.
September 11, 2015 Buying and selling a home is not just a transaction, it is your life, your family, your fiances and so much more. We have used Josh and his crew on 3 occasions now and have come to know and love them like family. If you are looking for an honest and ethical realtor Josh Barker should be your first and only phone call. We are proud to call him our realtor and our friend. -Mike and Jenny C.
August 21, 2015 The professionalism of Josh Barker and his staff far exceeded any of my expectations. It was the most pleasant experience I have encountered during a transitional period, when change can be so overwhelming. I never doubted that everything was being fully handled on my behalf for the best outcome for me! (And that is saying a lot!). Everyone was knowledgeable, courteous, and communicated so well. I highly trust Josh and feel that he knew the outcome I wanted and made sure that was what occurred. Thank you Josh and Team! -Sharen V.