Low Appraisals - Redding Area Real Estate
5/10/2013 - Redding, CA
From The Desk Of Josh Barker at RE/MAX
Once a month I update our great clients like yourself about the Redding Area Real Estate market. The largest noticeable change this month comes from banks. Over the past several weeks we have noticed that banks are requesting that buyers come in with "cash" for the difference between a potentially low appraisal and the offered price. This strategy has been employed by banks in other "larger markets" over the past several years and now it's beginning to play out in our market. This means that buyers with larger down payments stand to be the most likely buyer for middle and upper end homes in the future. Its seems that even banks know that appraisals are coming in below the true market value. I want to hear from you regarding this topic. Call me at 530-222-3800 or send me an email to [email protected].
The average sales price for a home in the Redding Area in April was $206,500 up from $167,000 in April last year. The largest appreciation has been in the lower price ranges. Nearly all real estate analysts agree that prices are expected to rise over the next 12-18 months at a fast pace. Don't be discouraged if you have not purchased yet. You may have missed the absolute bottom of the market, but with low interest rates and higher prices expected in the future it is still a great time to purchase a home.
The big picture for Real Estate in the Redding Area is very positive. The most pessimistic expecta tion for appreciation in the country over the next 4-5 years is still 11.7%. The most optimistic expectation for appreciation is 34.2% and the average of all projections is 22%. I encourage everyone to focus on the overall average at 22%. The Redding Area is still slightly behind other larger cities in California. Normally, feeder markets like the Bay Area and Southern California must do well before we receive the largest benefit and a influx of out of town buyers.
The opportunity for the move up seller is here. Not only are prices lower than in the past, but interest rates are low as well. Today it is relatively easy to get your home sold with the right marketing plan. With upper end housing still waiting for a big boom, today is an excellent time to consider purchasing the ideal home and benefit from the low cost environment. Purchasing a home at today's prices and interest rates compared to previous and potential future cost can save thousand over a year.
Many sellers are receiving multiple bids from buyers. The exciting news is that in many cases, homes are selling for over the asking price and with great terms. The way homes are marketed in order to receive multiple offers has changed over the past 5-7 years. Today, there is a proven and duplicable system for generating multiple buyers for a home. With home inventory at record lows, sellers have the advantage. It is up to the seller to use this advantage in order to maximize the selling price of their home.
The Josh Barker Real Estate Team numbers for March
|Homes listed for sale||21|
|Homes sold to buyers||12|
Thank you for all the great referrals!