Shasta County Market Update June 2016
From the Desk of Josh Barker
I am always amazed by the beautiful area we get to call home. From snow capped Mount Shasta and Mount Lassen to the picturesque rivers and streams abundant with fish and wildlife. Shasta County is the place I am proud to call home and I know many of you are as well. The great news is many people will be visiting our community this summer and with these visits a lucky few will fall in love with the North State. We are already experiencing a noticeable increase in the amount of out-of-town buyers purchasing in our area. This month I will touch on a few of the hottest topics trending now in our local housing market. Please feel free to contact me by calling the office at 530-222-3800 with any questions you may have.
Your local Realtor,
Click Here to watch Josh's video blog for the month of May
Hottest Real Estate Topics Trending Now In Shasta County
- The American Dream of owning real estate is back in 2016. Reports show that Americans feel that real estate is the best long term investment. This is a major shift from the overall feeling regarding real estate just 5 years ago. Even Warren Buffet is quoted as saying "Real Estate is proving to be one of the strongest long term investments."
- Interest Rates are currently trending below 4%. The Federal Reserve will likely meet again in June or July and most experts are predicting a small increase of .25% to the base rate which will likely translate into an average 4% interest rate. Rates are projected to be just over 4% by the end of this year...I am not holding my breath on this...
- Many "would be buyers" are working towards improving their credit scores in order to purchase a home. Although improving your credit score is always a good idea, many buyers may already qualify for a mortgage. With home prices increasing it is a great idea to speak with a lender sooner rather than later. You can learn more about purchasing a home by visiting www.reddinghomes.com/buying-home
- Risky loans that contributed to our last real estate bubble and bust are still a thing of the past. Lending standards are much tighter today, and most mortgages are taken out with 30 year fixed loan products. For this reason, the housing market today is much more stable and predictable. Local Redding, CA home prices are currently being established based on solid supply and demand factors.
- Appraisals have been creating challenges in the Shasta County real estate market. The latest reports indicate that 18% of closing delays are due to appraisals and 11% of cancellations are due to appraisals. It is important to remember that appraisal challenges are common in a market that is appreciating due to a lack of current comparable sales.
- The average sales price in the Shasta County real estate market is currently $250,000, up 5% from a year ago. It is projected that the average sales price will trend between 3-5% higher over the next 12 months. Appreciation will not effect the entire market the same way. Typically, appreciation will trend higher in the low range (below $300k) steady in the mid range (between $300k - 500k) and slow in the upper end (above $500k).
- Home inventory in Shasta County is trending lower than last year (down by an average of 7%). This is contributing to local home appreciation and shorter marketing times for homes that are priced correctly. You can view all the homes for sale on the MLS by visiting www.reddinghomes.com
- Foreclosures are continuing to decline and are averaging below 8% of the total sales in Shasta County. We are predicting a slight bump in short sales this year primarily due to a 10 year fixed loan product that was created back in 2005 which is now coming due. Many of these types of loans are still currently underwater and leaving homeowners with the choice of risking payment increases or selling as a short sale.
- Professional home marketing is taking the lead. The majority of home sellers in today's market are expecting more from the real estate agent they select. Professional photography, home staging, aerial footage and a large online marketing presence is just a few of the many items home sellers expect... These improvements are translating into a much more engaging consumer experience and have proven to make a significant difference in the amount of showings and offers a property will receive. You can view our plan for marketing homes by visiting www.reddinghomes.com/selling-your-home
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