Shasta County Market Update - July 2017
From the desk of Josh Barker @ RE/MAX
The temperature is rising and so are home prices in Shasta County. This summer has proven to be another strong year for real estate sales. The average sales price is up by over 5% compared to the average sales price of last year and the number of active homes for sale is remaining steady. This month we will review several of the hottest topics trending now in our local market. As always, if you have any additional questions feel free to email [email protected] or contact the office at 530-222-3800.
Have a great summer!
Click Here to watch Josh's video blog for the month of July
As I have spoken about in previous updates, the amount of new construction taking place in the greater Shasta County area is weak compared to other markets in California. There are several factors contributing to this phenomena. The largest factor is clear... Home prices have have not reached a point in which developers can acquire property, develop the property, pay the necessary fees associated with building the home and of course realize a modest profit.
Up to this point... The majority of new construction that has taken place in our county over the past several years has been possible for several major reasons. Either, the home builders already owned the land they are developing or, the builder purchased an existing development for a fraction of its original value from 10 years ago.
Low new construction inventory often equals an increase in overall home values. It's a simple example of supply and demand. When the supply of a product (in this case homes) is constant or low, and the demand for the product is high, prices rise. This simply means as long as interest rates remain relatively low and new construction remains low, we can expect to see additional home appreciation.
As home prices slowly climb, we can expect to see an increase in land acquisitions. This is good news for property owners that have been sitting on vacant land for an extended period of time.
You can view new construction in our local market at www.reddinghomes.com
Home Marketing And What You Need To Know
The days of the office caravan are long gone. In the old days, agents toured homes prior to showing clients. In many cases, the agent selected the homes in which the buyer would view. Those days are gone, and if a home owner expects their home to be shown to perspective buyers then it better look amazing online. Statistics prove that well over 90% of buyers start their search for a home online. It is for this reason that photography and supporting marketing materials such as virtual tours, drone video, and property descriptions must be on point.
Home buyers in today's market typically play a major role in the homes that they will ultimately view in person. The more attractive the home is perceived online typically translates into the number of showings a homeowner can expect to receive. We can probably all relate to the old saying that "a picture is worth a thousand words". In real estate, "that picture" is the picture that home buyers sees first when searching online. If the first photo is amazing, the chances of a home buyer clicking on that particular listing and learning more increases dramatically.
You can view our home marketing plan at www.reddinghomes.com/proven-marketing-strategies
The average interest rate is hovering right around 4.25% for a 30 year fixed mortgage. Last summer the average interest rate was 3.75%. This certainly does not sound like much of a change, however, the Federal Reserve is claiming we can expect to see additional interest rate hikes in the future. In the short term, we do not expect to see any significant impact to the housing market due to interest rates. Keep in mind, for every 1% increase in the interest rate, a borrower will pay up to 10% more in a monthly payment.
The housing market in the greater Shasta County region is very stable. We have not witnessed a crazy increase in home prices, or a major new construction boom either. These factors have all contributed to the overall stability that we a currently experiencing. The boom and busts that have plagued other markets like Las Vegas, or the Bay Area may spill over into our local market slightly, but we expect our local housing market to remain stable overall.
You can check the value of your home instantly at What's Your Home Worth?