In regards to the HSU economic report, out yesterday, of real estate in Humboldt County, there were many points that were made using a partial economic picture and I offer the following simple economic report of how this county's real estate market is really working.
Today's Value in the Humboldt County Real Estate Market
It is no secret that home prices have gone down in the last year and a half, from an all time high average sales price of $377,159 in March of 2006 to the latest average sales price for September of 2007 at $358,354. It is important to also recognize the unprecedented growth in appreciation in 2002 of 16.8%, 2003 of 20.4%, 2004 of 26% & 2005 of 20.7%. This growth was huge and not sustainable beyond 2006 but we should put the recent adjustment in our market in context in order to appreciate the condition of the Humboldt County real estate market. The recent drop is merely a 5% drop in average sales price from the high in 2006.
For Humboldt County we can go back to 2002 to find the average sales price half of today's average sales price. The high average sales price of 2007 is more than twice the average sales price for the year 2000. In 1999 did anyone expect their home to be worth nearly 3 times its value just a short 7 years later? Probably not.
Buyers are reaping the benefits of this market; they are getting great interest rates on home loans, there are more homes to choose from, homes are more polished and prepared for buyers, some sellers are even willing to help buyers with closing costs.
Sellers are also enjoying a large appreciation if they bought 2 1/2 or more years ago. Many homes bought 6 or more years ago have doubled in value, even in light of the recent drop in the market. Based on the average sales price of September 2007 and the average sales price of September 2001, the average sales price went from $162,553 to $358,354.
To summarize:
Buyers have more homes to choose from with great interest rates for loans.
Sellers are largely getting more today for their home than they expected when they bought it, provided they bought 3 years or more ago.
This is a great area to make a commitment to buying a home. The West Coast lifestyle is heavily sought after plus we are one of the last affordable coastal counties in California.
I look forward to meeting you and see that you and one of our Premier Service Agents have connected to capitalize on the many opportunities within our market.
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