Things are a changing here in our area. With the lowest number of homes on the market in probably 10-12 years Spring time may shape up to be a barn burner if we don't add inventory.
I talked to a top buyers agent last week and she said that on all the homes her client made offers on in the past couple months there were multiple offers on All of them!....Wow.....reminds me of 2005!
If we get a glut of REO's or bank owned homes in the spring then things will mellow out but right now there are simply not enough homes in the greater Redding Ca area for sale with the number of buyers looking!
The hardest hit category of course is the under $200k segment. For many first time home buyers in Redding Ca the entry level home is under $200k for the majority to be able to afford. With the majority of the REO's being sold "As-IS" the bulk of these homes can not be financed with FHA or VA loans leaving the majority of the home-buyers frustrated.
Virtually any home that is priced right that Can be financed FHA or VA will sell quickly if exposed to the market place correctly and gets in front of majority of the buyers looking for homes.
The Mid and upper segments are Not experiencing this right now so if you are in a $500k+ home and don't have it priced right from the beginning it will be difficult to get an offer at best! Price is driving the mid and upper price ranges more than the lower ranges because there are simply not allot of buyers running around looking for a Million Dollar home here now.
Similar to what happened in 2006 people didn't get that the market had changed for almost a Year!.....there are many right now that still don't believe it's a Sellers Market in the under $175k price range for good homes in good areas that can be financed. It has to be a sellers market in this price range and below when there are Multiple offers on many of the homes when the first come out. Its not a buyers market when the seller receives 2/3/5 offers over and over....
While it may be 6 months to a year for homes to truly appreciate here in the Redding Ca area one thing if for sure....things are Changing! If we don't get a huge influx of bank owned homes (REO's) in the next year or two then this may indeed be considered the "Bottom of the Market" that everyone has been waiting for.
I think once everyone reads in the newspaper and see's on T.V that things have change in real estate it will be TOO late to get that deal that you have been waiting for! Why you ask? If you are waiting or have been waiting for a year or two for the bottom and Other people have been waiting and you all hit the marketplace at the same time then there will be even MORE competition for homes...and more multiple offers!....and more disappointed buyers missing out and sad.