Area Real Estate News & Market Trends

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INVENTORY DOWN 13 %, NEW LISTINGS DOWN 21, PENDINGS DOWN 9, CLOSINGS ONLY DOWN 1 AVERAGING $422,057 OR $238.48 A SQFT. COMPARED TO $461,082 OR $252.92 SAME WEEK 2022

CURRENT ACTIVE HOMES FOR SALE 508, 512 last week compared to 578 same week last year
31 new listings last week vs. 52 in 2022", 1 new listings went pending first week compared to 13 last year

CURRENT HOMES PENDING AND IN ESCROW 188 total*, 209 last week, 260 last year same week

***total numbers are for the mean of Shasta/Tehama County Residential sales only, East to Whitmore, north to Lakehead and West to Igo, South to Hooker Creek which is a portion of Tehama County

NEW PENDING PROPERTIES FOR THE WEEK BY PRICE SEGMENT

9/12 to 9/18/2023 9/19 to 9/25/2023 vs. same week 2022

OVER $800K 3 2 0

$600-$799K+ 5 1 3

$500-$599K 3 2 13% 4 24%

$400-$499k 11 9 9

$300-$399k 12 14 15

$200-$299K 8 5 11

$100-$199K 4 4 2

UNDER $100K 0 0 0

TOTAL ............... 48 38 47

FELL OUT

OF ESCROW 18 18 10

Conventional loans are 46% of transactions for the week! The current week’s Active home inventory is 512 homes (down 13%) compared to 578 last year same week. There are only 188 homes pending (down 28%) compared to 260 in 2022. There were 31 New listings which there was 52 in 2022 and only 1 in escrow first week this year compared to 13 last year. There were 38 new pending sales this week of which there were 47 in 2022. There were 38 Closed sales for the week compared to 47 in 2022. 84% over $190.00 a sqft. which was 91% in 2022 and 90% were over $300,000 which was 92% in 2022. Of the $15 million in Closed sales for the week that averaged $422,057 or $238.48 sqft. with 74 days on the market compared to 2022 which was $461,082 or $253.92 sqft. with 45 days on market same week and 2021 which averaged $386,618 or $223.20 a sqft. with 71 days on market. Of the closed sales there were no new construction which is not consistent with California's current new home sales increasing trend with buyers turning to new construction due to the lack of acceptable inventory. This week there were 16 Conventional loans (46%), 7 cash sales (20%), 4 FHA (17%), 3 VA and 1 owner carry. 23% of closings were above list price, 31% at list and 46% below list. Of the closed sales 37% of buyers braved it and requested seller credits for closing costs or interest rate buy down or more for repairs averaging from $10,000 per transaction compared to a 44% in 2022 which was a lean seller’s market. This week 18 escrows failed (51% of closings) with 10 (28%) that failed last year. We had 5 listing agents that sold their own listing compared only 1 agent last year. A call to a local insurance company for a quote reminds me of shopping for a car, current flood insurance policy on one of my listings is $1,400.00 a year, I asked if someone bought the home today what would be the quote and she said it may be double and could possibly 3 times the current rate. She followed it all depends on the policy holder, have them call her. Must be nice to have a monopoly. Home insurance is continuing to be a major negative issue with current home purchases, buyers could see $2500.00 to $4500.00 policy for 1 year. We had another record number of price reductions on Monday in sellers effort to attract the limited number of buyers to the table. Stats by California Association of Realtors; California Insurance Commissioner Ricardo Lara said he will write new rules that would let insurers consider climate change when setting their rates. He has also pledged to consider rules that would let them consider some of their reinsurance costs. The rules requiring insurance companies to get permission from the state to raise their rates would not change. Lara said the state will only let companies use these new rules if they write more policies for people who live in areas threatened by wildfires. He said this means companies must write policies in these areas of no less than 85% of their statewide market share. That means if a company insures 20 out of 100 homes, the company would have to also write 17 policies for homeowners in an area threatened by wildfires. How will this affect rates? New C.A.R. forecast shows stronger sales and prices in 2024: Last week, C.A.R. released its housing market and economic forecast for 2024, which predicts a modest increase in both home sales and in home prices next year. Although the state is not expected to return to the elevated levels reached during 2021, existing single-family transactions are expected to rise to nearly 330,000 units. This would represent a 22.9% increase from a projected 266,100 units this year. Home prices, which continue to be driven higher by a dearth of available inventory, will continue to rise in 2024, with the median price expected to reach $866,300 on an annual basis—a 6.2% increase from 2023 and slightly higher than the original projection for last year. The recovery is likely to remain subdued, but both inventory and sales should pick up in the second half of the year as rates begin to dip slightly.

Call GENESIS Real Estate today!

Don J. Wilkins

Certified Probate & Seniors specialist

Broker- #01229994

direct 530-227-9639

fax 530-214-3484

3335 Placer St. #227

Redding, CA 96001

donwilkins@shasta.com

http://www.GENESISRealEstate.org

"Home to New Beginnings"

July 31, 2017

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