What is really taking place in today’s real estate market?
There are many people arguing over what is happening in the housing market. One thing is for sure….There are still a lot of homes selling in Shasta County. Yes, sales are down this year compared to last year. Yes, inventory is up over last year. The good news is that distressed property sales are down compared to last year. Additionally, the high end market is showings signs of recovering. The big difference between this year and last year is that we are gaining ground on the normal sales market. Homeowners are taking control of the resale market and are dominating sales each month. This means fewer distressed property sales which is reducing the overall sales in the market and are giving way to a normal real estate market. This is great news for Shasta County. If you have any question about Real Estate feel free to contact me. Make it a great April!
Investor Type Sales Are Slowing Down In The Market
With the recent home appreciation, many institutional type of investors are leaving the Real Estate market in Shasta County. This is a good sign! This simply means that the amount of foreclosure and distressed property sales are decreasing. In the very worst point in the real estate market in the Redding area, distressed property sales exceeded 50% of all sales on a monthly bases. Today distressed property sales in the Redding area are below 20%.
Josh’s ideal investment opportunity formula by clicking here
First time home buyers are prevalent in the market
First time home buyers represent a large percentage of all sales taking place in Shasta County. The majority of these sales are taking place below $250,000. First time home buyers typically make offers with lower down payments and often request that the seller pay for some of the closing costs. Home owners can still receive top fair market value for a home by simply focusing on the bottom line they want to net. When an offer is negotiated properly a seller can help a buyer get into the home and still net the price desired.
View some of the best buys in Shasta county by clicking here
Interest Rate Projections
As I have stated nearly every month, interest rates are going up. The government is continuing to taper the amount of mortgages that they purchase. Tapering will lead to higher interest rates over time. The most recent expectations state that interest rates will be well over 5% by this time next year. For every 1% that the interest rate increases, the buyers purchasing power is effected by up to 10%. Investor Type Sales Are Slowing Down In The Market With the recent home appreciation, many institutional type of investors are leaving the Real Estate market in Shasta County. This is a good sign! This simply means that the amount of foreclosure and distressed property sales are decreasing. In the very worst point in the real estate market in the Redding area, distressed property sales exceeded 50% of all sales on a monthly bases. Today distressed property sales in the Redding area are below 20%.
The Cost Of Rent Is Increasing
Rent rates are increasing in the Redding Area. In some cases it is very difficult to find a home to rent. If you have pests, start looking early. It is more difficult to locate a home with a pet friendly landlord than when you don’t have pets. In the long term, purchasing a home is certainly the best way to hedge against higher cost of living expenses in the future.
The West Coast Is Still Leading The Way In Home Appreciation
Across the country, home values have increased over the past 3 years.The west coast has appreciated faster than any other region. The weather, job market, and population growth have all contributed to positive numbers. In Shasta County the largest contribution to price increases has been the decline in distressed properties available for sale, favorable interest rates, and a balanced supply of homes for sale.
Home Appreciation Expectation By 2018
Across the board nearly every economist agrees that home appreciation will exceed more than 10% between now and 2018. This expectation has been giving first time home-buyers and others the confidence to purchase homes. If the need arises in a few years, they could sell and not find themselves in the same situation that many home owners found themselves in just a few year ago.
Josh sales report for March
Homes listed for sale…………..31
Homes sold for sellers…………24
Homes sold to buyers……..…...15
Thank you for all your great referrals in March!