The current state of the real estate market in Crescent City, CA.

I had an email today from a client who has her home listed with me asking about the current state of the real estate market in Crescent City. My client's home is priced in the high $200,000's, a price range that isn't hopping right now in the Crescent City real estate market, but she is reading about the increase in sales throughout the state and U.S. and asked the following: 

Thanks Fran, hope you have a speedy recovery.   I know in the outside world things are moving along nicely.  What do you think the future holds for the Crescent City real estate market?

Here is my answer to that question and what I think we can expect for the near future.

• 30 homes have sold since 8/1/09 in the Crescent City/Del Norte County real estate market and only 5 of those have been over $250,000 (about 17%). 
  
  
• The lower price range is moving because there is still 100% financing available in that segment of the Crescent City real estate market (USDA GRH program) and purchasers who have been priced out of the market until now are jumping in.  I think that segment will continue to move as long as this financing remains available. 
  
  
• The brisk real estate sales we are seeing elsewhere throughout the state of California are bolstered by investors with cash (we are seeing that in Crescent City too; I've written 3 cash offers in the last few weeks), who are peeved at 1% return on their investment with their banks.  However, the investor's are looking for a positive cash flow and are purchasing "deals," mostly under $250,000, but some are purchasing 2^nd homes with a view of the ocean or river (homes priced above $500,000). 
  
  
• Your home is a step-up home for most buyers, which means they have to sell their home to purchase one that's a step-up from what they currently own.  There is not much financing for these types of purchases right now.  This, along with consumers being scared to step-up to a higher house payment, state employees (our largest employer in Crescent City/Del Norte County real estate market) afraid they may have wages cut further or lose their job all together, makes it really tough for your price range. 

Your home is competing with brand new construction in the Harbor View and Redwood West subdivisions. Both are lovely subdivisions with brand new homes priced below $300,000. In order to obtain an offer in this market in that price range, there has to be a lot of showings, and in order to have a lot of showings, homes have to be very competitively priced.

I hope this helps,

Fran

The median price for homes sold in the Crescent City real estate market since August 1, 2009 is $193,000.  Lower priced homes are receiving multiple offers and selling quickly, but homes over $250,000 need to be very competitively priced to sell in a timely manner.

With high inventory in this price range and stiff competition for a smaller segment of buyers, proper pricing is more important than ever. 

I expect this to continue until the state of California gives their employees a feeling of stability by giving back the 15% pay cut and until banks resume loaning money again.  99% of the loans for real estate sold in the Crescent City real estate market since 8/1/09 was USDA Guaranteed Rural Housing or FHA.  

Please call me if you are looking for a local lender who is well versed in both these programs and who gives prompt and courteous service.  Finding a reputable lender and a good loan program that will comfortably fit your situation is the first step in finding a home.

Thank you for stopping by.

       

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