Crescent City/Del Norte County June Market Report - Finally some great news!
Yes, I am happy to write the June market report. Sales increased 41% over May's figures. We can thank the low interest rates in April along with the $10,000 California Tax Credit for purchasers of new homes (this tax credit is no longer available) and the $8000 Federal Tax Credit for First Time Home Buyers, which is still available until November, for this marked increase.
The segment of the market that is selling like hotcakes is $200,000 and under with 66% of June's sales and 62% of sales overall for 2009.
The financing of choice for these transactions is the USDA GRH program and FHA. The GRH program is a wonderful program for low to moderate income families and still provides 100% financing, although the buyer needs to come up with approx. 3% in closing costs. This hurdle has been overcome by asking for a seller contribution to cover those costs. If you are selling your home, be aware that there is a very good chance that you will be asked to "contribute" part of the sale price to cover these costs.
So, good news for sellers, homes are still selling, but there is a lot of competition out there with a high inventory of 275 and absorption rate of 12 months (the absorption rate is how quickly it will take to sell all current inventory at the current rate of 22 sales a month). We are still in a buyers market; no surprise there.
"On Main Street, the recovery will begin when foreclosures stop," said Senator Jack Reed of Rhode Island, who has been pushing the Treasury Department to get mortgage relief more quickly to homeowners at risk of foreclosure.
Unfortunately, the U.S. is on track to see 3.5 million foreclosures this year. The increase in foreclosures remains the single largest threat to economic recovery and although the Del Norte County foreclosure rate is lower than most California markets, at only 7% of the listings (approx.), foreclosures are still a force to be reckoned with. As foreclosures come on the market at below market value, they affect every other home in the neighborhood by lowering values.
So, here is the good news for buyers...prices are low, the GRH program still offers 100% financing to qualifying buyers, and inventory is high making seller's more negotiable than ever.
Here is the market at a glance for June 2009.
|
|
6/09 #
Sold
|
6/09
Median
|
6/09
Average
|
|
Residential Sold Listings
|
22
|
174,750
|
186,114
|
|
Price Range
|
% Active listings
|
% of May 2009 Sales
|
% of 2009 Sales
|
|
$199,000 and under
|
39%
|
66%
|
62%
|
|
$200,000 - $299,000
|
24%
|
27%
|
21%
|
|
$300,000 - $399,000
|
14%
|
9%
|
8%
|
|
$400,000 - $499,000
|
7%
|
0%
|
7%
|
|
$500,000 - $599,000
|
2%
|
0%
|
1%
|
|
$600,000 - $699,000
|
2%
|
0
|
0
|
|
$700,000 and up
|
8%
|
0
|
0
|
Here are May's figures if you would like to compare:
|
|
5/09 #
Sold
|
5/09
Median
|
5/09
Average
|
|
Residential Sold Listings
|
13
|
185,000
|
229,508
|
|
Price Range
|
% Active listings
|
% of May 2009 Sales
|
% of 2009 Sales
|
|
$199,000 and under
|
40%
|
54%
|
62%
|
|
$200,000 - $299,000
|
23%
|
23%
|
18%
|
|
$300,000 - $399,000
|
16%
|
0
|
8%
|
|
$400,000 - $499,000
|
9%
|
15%
|
10%
|
|
$500,000 - $599,000
|
2%
|
8%
|
2%
|
|
$600,000 - $699,000
|
1%
|
0
|
0
|
|
$700,000 and up
|
9%
|
0
|
0
|
As always, I am here to assit you with all your real estate needs. I am here to answer all your Crescent City / Del Norte County real estate questions. Thank you for stopping by.
Crescent City Garage Sale this Saturday and Sunday at 350 Sleepy Hollow. Take Parkway to Sandmann, right on Sleepy Hollow.
