The Crazy/Loco Real Estate Market
Things are crazy, crazy! If you would have told me a year ago that we would be seeing the "bottoming" of the real estate market in our little town of Redding, CA I would have said you're crazy, "muy loco"...but folks, I'm here to tell you we are turning the corner!
Remember those days when you'd put up a for sale sign and the phone would ring (a lot) and soon after you'd have multiple offers on the table? Well, that's exactly what's happening today in Redding's Housing Market. Busy buyers out looking in the late dark hours, heavily visited open houses and agents bumping into each other showing the same houses. We haven't seen days like these for the past six years, it's about time!
Supply & Demand (and my guacamole salsa)
Remember in school when the teacher explained the law of supply and demand? Lack of supply drives prices up. I see it every year with my favorite fruits and veggies. Take my guacamole salsa for example, it tastes so much better when I'm not paying an arm and a leg for those avocados. Home buyers for the past few years have tasted the best deals of the real estate market, but I believe that's about to change. We will soon hear, "I wish I would have bought real estate in 2011 or 2012". Now enter the home-owner...what happens when you have a lot of buyers willing and ready but not enough supply to choose from? Bingo. But don't get carried away, overpricing your house will backfire. We're not out of the woods yet and savvy home-buyers will not over pay, not like in the old days. We are seeing plenty of qualified buyers out in the market, in all price ranges, sales are happening, multiple offers are now common across the board, this phenomenon is helping stabilize home values, and that is a good thing for our local economy which is highly impacted by the housing market.
Why Then Hasn't My House Sold
Could it be slightly overpriced? Is it the location? Marketing efforts (or lack thereof)? Or maybe it's the condition of your home? Whatever it may be, you should have a heart to heart talk with your real estate agent and re-evaluate the status of your house. Generally speaking, if you had several showings during the first three weeks of listing your home (the honeymoon phase), and no offers, chances are it's overpriced. Perhaps, it was well marketed, it's in great condition and the location is wonderful; many have come to see it but you still don't have an interested buyer...then it may be time to reduce the price. Remember, buyers are out there, homes are selling, get in the game.
Local Statistics - Redding CA
As of this article, (March 2012), there are approximately 740 properties for sale throughout Shasta County, we're use to seeing this number well over 1,300 and 35% of this active inventory is in Redding, that's approximately 270 homes.
People think Redding is "flooded" with foreclosures, you'll be surprised at these numbers:
- In Redding, approximately 50 of the houses currently for sale are bank-owned (a.k.a. REO's/Foreclosures) - here's the most recent list of foreclosures, http://link.flexmls.com/wwkzhocr4x7,10 (this is as of March 2012).
- What about Short Sales? The inventory is even lower, with just over 20 single-family-homes short sales don't make up most of our inventory as some may think. Here's the most recent list of short sales, http://link.flexmls.com/wwkzhmxp4fl,10
- When you do the math, Redding's distressed market is really about 25% of the total inventory, again foreclosures and short sales combined. While that's no little number to sneeze at, to say that our market is "saturated with foreclosures" when less than 50 single family residents have been repossessed would be and an over-inflated statement.
In a nutshell...
If you're in the market to buy and you are looking to snatch up a really good deal, you better not wait much longer, this is by far the best time to do it because change is in the air.
Sign Up to Receive Free Alerts of Homes in Your Price Range the Minute they Hit the Market