Redding Area Real Estate...Watch Out!
From the desk of Josh Barker
Sales are up in nearly every single category over last year.
Buyer demand has increased over the last year and is still trending up.
The supply of homes is decreasing, largely because of the slowdown in foreclosures. Current inventory of active homes for sale is 560.
Foreclosure numbers have been trending down. However the latest drop in foreclosure activity has been caused largely by the Home Owner Bill of Rights that was passed towards the end of last year. This bill requires lenders to take additional steps prior to filing notices of default and foreclosing. The impact on the market is that we have a backup of shadow inventory that is expected to resume by April this year.
Real estate is still the winner at 45% growth since the year 2000. The stock market as a whole did not fare as well.
Interest Rates are showing signs of upward pressure. By the end of 2013, rates are projected to be near 4.4% on average...
Expect to see lending standards tighten over the next 2 quarters. QRM "Quality Residential Mortgage" standards are rising. The impact on the market could mean fewer people qualifying for a mortgage. The biggest changes will be found in the subprime market. The Redding Area has a large subprime market, which means demand may decrease.
Home prices are still expected to rise this year. However, there are several hurdles to overcome. The first hurdle will be the resuming flow of foreclosures. The second hurdle will be the increased difficulty of obtaining loans. By the end of the year, these changes are expected to be absorbed with limited impact.
The Josh Barker Real Estate Team stats for January 2013
- 22 Homes Listed for sale
- 13 Sellers homes listed with Josh went into escrow
- 16 Buyers working with Josh's team found a home to purchase