Local Market Conditions
A return to "affordability" May 2008:
Finally, people can afford to buy a home again! With prices falling in many parts of the country and the number of foreclosures rising, a small yet growing number of bargain-hunting buyers are seeing an upside to the real estate market. From first time home buyers who were priced out of the market between 2001-2005- to investors, and now international buyers. The decline in the value of the dollar against other currencies and lower prices translate into a discount of up to 30 percent for some foreign buyers. Many say this could signal that the market is regaining its sanity, hinting that a bottom could be approaching in the near future, perhaps as soon as early-to-mid 2009. Affordability in Redding is better than ever with the median price is around $262,000. You'll be amazed at what you can buy these days for that price, take a look at the MLS to get an idea.
The Center for the Continuing Study of the California Economy shows that home prices throughout California are getting closer to their historical relationship to median income, though they still may need to drop about 20 percent to get back to the norm they enjoyed between 1988 and 2002. How far down the prices go depends on things like mortgage rates, the job market (lets hope it doesn't get worse) and the inventory of unsold homes.
Here is a quick snapshot of last month's activity (for residential only):
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Residential Property
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Month of:
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April
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Total Active Listings
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Total Sold
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List Price Average
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Sales Price Average
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Avg. Days on Market
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2007
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2008
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2007
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2008
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2007
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2008
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2007
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2008
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2007
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2008
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2,004
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1,830
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205
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164
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$ 317,049
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$ 287,081
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$ 309,652
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$ 274,670
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130
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114
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Previous Month (March)
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Total Active Listings
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Total Sold
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List Price Average
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Sales Price Average
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Avg. Days on Market
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2007
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2008
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2007
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2008
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2007
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2008
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2007
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2008
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2007
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2008
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1,765
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1,735
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216
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165
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$ 329,434
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$ 275,148
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$ 319,798
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$ 263,347
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135
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132
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MORTGAGE NEWS
"Walk-away" Homeowners myth
True or false: More and more homeowners who owe more than their house is worth are giving their house keys back to the bank? While anecdotal evidence suggests that mailing the keys back to the bank is occurring, there doesn't appear to be any evidence that the practice has become widespread.
MAKING SENSE OF THE STORY FOR CONSUMERS
- Data on the number of "walk-away" homeowners is lacking. The Mortgage Bankers Association and major banks believe the practice is increasing but don't have any numbers to back up this supposition.
- Lenders suggest the practice is more prevalent among investors and "flippers" than among homeowners who live in their home. Bankers confirm that most borrowers are interested in working out a solution when they fall behind in their payments or when their home value is "under water" or their interest rate is about to reset.
- There is no sign that walking away from a mortgage obligation is becoming more "socially acceptable," observers say. Homeowners historically have been known to do whatever it takes to avoid losing their home to foreclosure.
Banks swamped by a tidal wave of foreclosures increasingly may be looking the other way and letting homeowners remain in their homes, according to some sources. Banks say they are allowing homeowners more time to work out financial issues and potentially save their homes by avoiding foreclosure. Even so, it's important to remember that 96.4 percent of borrowers were on time with their mortgage payments. Only 3.6 percent of borrowers were at least 90 days late on their payments in December - the highest percentage in more than five years, reported the Mortgage Bankers Association. And new foreclosures accounted for only 0.83 percent of all home mortgages in the fourth quarter of 2007, up from 0.54 percent in 2006.
Source: 2008 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Community News and Events
It's confirmed...Trader Joe's is scheduled to open by October of this year! Rumors of the store opening in Redding have been flying around for years but plans are now in progress for this natural and specialty foods grocer to open its doors. These are exciting news for those of us who have traveled to Chico or Sacramento for our favorite healthy snacks and gourmet products from Trader Joes.
Not into Rodeo? Many of you locals know the Rodeo (happening this weekend) is one of Redding's biggest city events. But if you're not into Rodeo...how does canoe races, Dutch oven cook-off and classic car show sound to you? It's all happening in Red Bluff, just 30 minutes south of Redding.
- The Great National Canoe Drag Races, Red Bluff's Relay for Life and a huge downtown sidewalk sale are just some of the events slated for an action-packed period starting today Friday through Sunday (5/18). Get the details here.
Film Festival to Hit Redding: Have you heard about the Sundial Film Festival? It's scheduled to debut here in Redding in March of 2009? Sundial Film Festival will showcase digital film and photography that enlighten and reflect the diversity of the artists, residents and natural resources in Northern California and Southern Oregon. The film festival is destined to grow from year one, so mark your calendars for this premier event...March 13-15 (2009) at the Cascade Theatre.
- Open call for entries in film, still photography and skill (beginners, intermediate and advanced art) accepted for competition in 2009. Check the site.
Reminder: North Valley Art League 17th Annual Photography Show - now through May 31st, click here for more information.
Thank you for reading!
Chris & Maria Jeantet
Office Number: (530) 276-9093 Cell: (530) 510-8880
