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From the Desk Of Josh Barker @ RE/MAX
Home sales for the month of October finished at 262. This number is down -17% from the 317 closings in the same month one year ago. This reduction in closings was anticipated as the number of fire related purchases has rapidly declined.
The number of new listings coming to the market in the month of October reached 333. This number is down -18% from 409 one year ago. This decrease in new listings to the market was also anticipated. Last year home sellers jumped into the market at higher levels due to increased buyer demand.
Current home inventory is averaging 1,084 properties for sale. This is down -6% from the 1,154 homes on the market at the same time last year. Home inventory is expected to decline as we move into the winter months and should level off in the mid 900 range.
Interest rates continue to receive the majority of the attention. Interest rates are at near, all-time lows and FHA loans which represent a large portion of loans below 300k price range, have extremely low rates.
Homeowners that obtained financing in the past 3+ years and have private mortgage insurance (PMI) may want to consider refinancing. Private mortgage insurance can add hundreds of dollars per month to a mortgage payment and could be removed in some cases when the property has more than 20% equity.
Home Price Expectations
Home prices and where they are heading is a major topic surrounding both buyer and sellers. With sales declining in the local market, the two largest contributing factors to future pricing will be home inventory and interest rates. If the inventory of homes for sale remains stable or drops slightly, that could be a positive factor towards stable home prices. If interest rates begin to increase, this could be a negative factor impacting home prices. In the short term, expect home prices to flatten out and perhaps soften a bit through the winter months. In early spring, interest rates and the supply of homes for sale will act as leading indicators of what to expect next.
You can view the average value of your home instantly by visiting www.shastahomevalue.com
As always, if you have any additional questions regarding real estate, we are always here to help. Please feel free to email me directly email@example.com or telephone at 530-222-3800. Have a Happy Thanksgiving!
Make it a great day!
P.S. You can view all of our past real estate market updates by visiting www.reddinghomes.com/blog