The Redding Real Estate Economy Belongs to You Again!
8/09/2013 - Redding, CA
From The Desk Of Josh Barker at RE/MAX
Ready for some good news! The Redding Area real estate market has stabilized, appreciated, and is poised for normal price appreciation between 3-7% per year in the future. In addition, distressed property sales are decreasing as well. In the past, distressed property sales represented approximately 35-50% of the total sales in the market. Today, distressed property sales only represent approximately 20% of the total home sales in the market. I hope you enjoy this month's update. It is all good news!
The breakdown of today's home buyers in the Redding Area looks like this...
Approximately 45% of the buyers in today's market are current home owners that are either upgrading or downsizing. This is a major change from just a few years ago when only approximately 25% of buyers were home owners. This single change has shifted the market back to a sellers' market.
Approximately 35% of the buyers in today's market are first time home buyers. This is great news for the stability of the housing market. With lower home prices and interest rates, these buyers will be equity sellers in the future with little risk of foreclosure.
Approximately 20% of the buyers in today's market are investors. These investors are both "flippers" and long term cash flow investors. What is great about "flippers" is that they take a property that is normally in very poor condition, give it a nice facelift, and sell for top dollar which improves the values for the neighborhood
Historically rates have averaged 8.69%. This may seem a little high to many of us but keep in mind, rates have been nearly 20% in the past!
Current interest rates have averaged 4.5%. Rates are expected to creep up in the near future so be prepared. Here are a few things to consider...
Doug Duncan, the Chief Economist for Fannie Mae recently stated... "I don't think the Fed ultimately would be troubled with a 6.8%, 30 year mortgage rate in the future"
A homeowner's mortgage payment at 4.5% on 200k is $1,013.37. If the interest rate increased to 6% on a 30 year mortgage the payment would be $1,199.10. This change would be an increase of $185.73 per month and $2,228.76 in a year.
Home prices in the Redding Area
The average home list price is up 11% over last year.
The average home sold price is up 20% over last year.
The Josh Barker Real Estate Team numbers for July
|Homes listed for sale||18|
|Homes sold to buyers||22|
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