The 
Crescent City/Del Norte County Real Estate Market Report for April 2009 - Improving.
I was really upbeat when I sat down to write this report, however when I pulled up the number of sold residential listings for April of 2008, I realized sales have definitely dropped off and we have a way to go before the market reaches that level again (April 2009 is 42% lower than April 2008).
My spirits were lifted for the upper end home buyers, though. Although homes in the upper end price range (I'm calling that $300,000 and up at this point) aren't flying off the MLS, at least we are seeing some movement and that should be encouraging for upper end homeowners who need to sell.
The current absorption rate is 27 months, which is abysmal. The absorption rate is how long it would take to sell the current inventory at at the current rate of 10 homes sales a month (Aprils number of sales).
Look at the stats for homeowners that have a home to sell under $200,000...Wow! That is the segment of the market that is moving and no wonder. 22% of current pending sales are REO's or distress sales such as bankruptcy or short sales. Banks are putting foreclosed listings on the market at way below market price, sometimes 60% or more. One new listing that came on the MLS on Saturday, had two offers this morning. Those type of listings are bringing down home values for the surrounding homes (and entire market) and foreclosures are not through by any means.
Prices will continue to fall until the foreclosures slow to a trickle and hopefully stop. Banks are cooperating more with loan modifications and a note about that: YOU DO NOT NEED TO HIRE SOMEONE TO DO A LOAN MODIFICATION. Our president has set-up an agency who will help you for free. If you are in trouble with your loan, please check out www.makinghomesaffordable.com.
The market at a glance (a few sales were reported after my original post. These are updated figures):
|
|
4/09 # Sold
|
4/09 Median
|
4/09 Average
|
|
Residential Sold Listings
|
10
|
$235,000
|
$219,200
|
|
Price Range
|
% Active listings
|
% of April 2009 Sales
|
% of 2009 Sales
|
|
$199,000 and under
|
40%
|
40%
|
64%
|
|
$200,000 - $299,000
|
23%
|
20%
|
17%
|
|
$300,000 - $399,000
|
15%
|
20%
|
11%
|
|
$400,000 - $499,000
|
9%
|
20%
|
8%
|
|
$500,000 - $599,000
|
3%
|
0
|
0
|
|
$600,000 - $699,000
|
2%
|
0
|
0
|
|
$700,000 and up
|
9%
|
0
|
0
|
If you are a buyer, now is a great time to buy. In fact, you need to have all your ducks in a row and work with an agent who is on top of the game and will let you know the second a deal hits the market so you are ready to pounce.
If you are a seller, being priced right is the name of the game. With so few sales over $200,000, it's very important to be competitively priced in that price range. If you are not priced to sell, you may want to wait until the market sways back to a sellers market in that price range. Same strategy applies if your home is priced under $200,000. Remember, that price range is especially hit hard with REO listings and you have to compete.
If you are ready to list your property, give me a call. I have sold more listings so far in 2009, both in volume and number of sales, than any other agent in Del Norte County. The reason for this is because I know the market and work with my clients to price accordingly.
If you are looking to buy, give me a call and subscribe to my foreclosure alerts to be the first to hear of the deals that hit the market.
Thank you for stopping by. Your comments on this post are welcomed and appreciated.
;)
;)
Good for you Fran, It does look positive and I love it you are doing so well. Makes me smile.