Have you heard the rumor? The rumor is that a port is coming to the Eureka area. I have heard from several credible sources that Northern California has a plan for a port. Apparently San Francisco, LA, San Diego, and Portland are having trouble filling the future needs for shipping. The topography of the Eureka area provides for a great site for a future port. The 299 West HWY is being straightened out and there is a plan for a railroad to connect from Eureka to the Interstate 5 corridor. More to follow I'm sure...
Redding Area Real Estate...Watch out for the increase in interest rates. I have spoken about it before, rates are projected to increase. As of today, rates have moved from an average of 3.75% to just over 4%. I expect to see them bounce back and forth a bit, but don't be surprised to see them settle around 4.4% by the end of the year.
- Multiple offers...how do we make sure that our buyers win out over the others
5 steps to raise chances of offers getting accepted by 50%
1. Provide Proof of funds with offer
2. Large good faith deposit
3. Letter to owner occupied sellers stating why you like their home
4. Offer seller to stay in home for 1 week after close of escrow
5. Ask what additional things are important to the seller
- Listing inventory is at major lows
- Foreclosures are down by 40% (use to provide most inventory)
- Negative equity is beginning to dry up (seller confidence is improving)
- 3 month supply of homes for sale (sellers market)
- Rates are expected to rise (today is the chance of a lifetime)
- Rates are still heavily manipulated by the fed to stimulate the economy
- Low on 30 year rates around 3.25% currently at 3.75% (as of June 4%)
- All experts agree that rates will be above 4% by the end of the year.
- Forget the old market
- Bad mortgages caused prices to rise as high as they did.
- Everyone qualified for a mortgage even if they couldn't afford it.
- Prices relative to income were way out of whack
- Today prices are far below income and there is room for appreciation as long as rates stay low. (either home prices or rates will bridge the gap or combination of both...not loose lending standards)
- Home appreciation is likely in the near future
- Could be bumps in the road as the bridge is gaped between income and home values.
- Once home values, relative to income is near equal line, normal wage growth through inflation and availability of housing dominate home prices going forward.
- 35% of all sales nationally at peak were distressed properties (50% in Redding Area).
- 21% nationally today and are close to the same number for Redding as well.
- Shadow inventory is lower. No dam is going to break. Banks have popped the cork. and are now controlling the release and taking control of prices.
- Multiple offers on bank REO's are bidding prices up and banks are asking for no appraisal contingency.
- Court house sales are getting a nice face lift and are presented to market at full value.
- Less than 2% of homes in California are in process of foreclosure.
- There is 18 months of measurable inventory.
- Commercial property for sale in the Redding Area
- The outlook is improving
- More foreclosures are coming as the banks portfolio is balancing and they have the time and resources to work on bad loans
- Most available space is older and or needs many improvements
- Newer space fills up quickly.
New General office space is filling quickly between 1.35-1.55 per foot