4/16/2013 - Redding, CA
From The Desk Of Josh Barker at RE/MAX
Everyone is now saying it...Real Estate is Back!
With great news on the housing front, more and more people are optimistic about real estate. Our team agrees. However, we don't expect to see the double digit appreciation year after year like the boom in the mid 2000's. Instead, we expect to see fast growth in the short term, and slower growth in the long term.
Return on investment
Real estate is still up 46.1% since January 2000. The Dow is currently up 33.3% since 2000 according to MSN MONEY.COM, Case Shiller. The good news is that real estate is still proving to be a great investment.
Pending home sales in The Redding Area
Currently there are 613 homes currently in "pending" escrow status. Unbelievably, there are 613 homes for sale. Simply put, 50% of all the homes on the market are currently in escrow. This translates into a 2 month supply of homes for sale. Strong appreciation is likely through the balance of the year.
Future price projections by the "Big's"
B of A 8%
Freddie Mac 4.5%
Mortgage interest rates
The lowest interest rate for a 30 year mortgage over the past 12 months averaged around 3.375. Mortgage rates are currently trending up and are now averaging near 3.625%. The Mortgage Bankers Association projects rates may average 4.3% by the end of 2013 due to a stronger housing market and other factors.
Old Home Prices and interest Rates compared to current home prices and interest rates
Example.....Same 4/2 bath 2,000 sqft home built in 2004
Year 2006.....Price $400,000.....Rate 6.5%......P&I........$2,528.27
Year 2013.....Price $300,000.....Rate3.5%.......P&I........$1,347.13
Monthly savings today with the same home.......................$1,181.14
Foreclosures and short sales
Foreclosures are trending up again after a temporary stall. The stall was largely due to regulations put on banks in the 4th quarter of last year. Foreclosures have resumed but are still expected overall to trend down in the next 24 months. Short sales are still playing a major role in overall sales. Banks still prefer to perform a short sale in most cases and the process has become more streamlined.
The Josh Barker Real Estate Team numbers for March
Homes listed for sale.....16
Homes sold to buyers...12
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