We're often asked this question by friends, family and clients and while it's important to clarify that not all homes hit bottom at the same time, if we look purely at local MLS numbers and current market activity, we can safely say that Redding's Real Estate market in general has seen the bottom.
The decline of home values has slowed down in our area and our "pending" sales continue to increase every month...causing sales activity to remain solid. A recent index by Zillow, indicated that Redding's home values for the month of September were up 0.1% compared to August and down 20.6% compared to September 2008. In one of their recent surveys, we see that 84% of homeowners believe their home has reached bottom. Some interesting statistics in this survey indicate that:
- 41% think their home's value will increase in the next six months
- 43% think their home's value will stay the same
- 17% think their home's value will decrease
Experts in our industry are reporting favorable home prices in many parts of the country, including our home state of California. Bidding wars you say? Yes. Prices so good that they have ignited bidding wars as first-time buyers compete with investors for many of the same foreclosed properties. It's been years since we've seen property values so low that people (normally not investors) are investing in great neighborhoods and creating some positive cash flow for themselves.
On the other hand, one must also consider several external elements before speculating on how soon home values will begin to appreciate again.Some of these factors include but are not limited to;
- The economy
- Unemployment
- National Issues
- Consumer Confidence
With all that being said, I personally believe we have hit bottom here inthe beautiful North State, but I'm staying realistic to the fact that it will take at least a decade if not longer for home values toreach double-digit appreciation. To say that we are at a turning point is more accurate, and that dear friend, is good news!
Got questions pertaining to real estate? Visit our website.
Chris and Maria Jeantet, Realtors
Redding, CA
Coldwell Banker C&C Properties
(530) 510-8880
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Perhaps some areas have bottomed out, and others have a ways to go. There is no reason to believe that we'll ever see property values like recent years past.