Tuesday, November 21, 2006

American Dream on Sale in Redding?

From the Redding Record Searchlight:

Home sales in Shasta County in October fell for the fourth straight month, according to real estate industry tracker DataQuick Information Systems. The slowing pace of sales and falling prices in the north state reflect a nationwide trend as the once-booming housing market fizzles.
...
Last month, Shasta County recorded 127 home sales, down from 149 in September and 198 in October 2005, DataQuick reported. The median sales price in Shasta County in October was $248,000, compared with $270,000 in September and $249,000 in October 2005. The median price is the amount at which half of the homes sold for less and half sold for more.
...
In Shasta County, home sales in the third quarter declined 37 percent from a year ago. For the year, home sales in the county also have dropped 37 percent. Shasta County's numbers include new and used home sales.
...
"The American dream is on sale right now. Prices are 10 to 15 percent off their peak," [Brad] Garbutt [of Real Estate Professionals GMAC] said. "Buyers are fearful of jumping in because they don't know what the future holds. We're dealing with a psychological market."

15 comments:

Lander said...

From the article's comment section:

Bambi and Suzzanne. I don't know what you do for a living.but you need to leave the realesate comments to the experts,people like brad and myself who work in Realestate every day know excatly what is going on.

There is always a good side and a bad side to every story and all I ever see from this newspaper and people like you is the NEGATIVE SPIN...

Prices are stabilizing and the national news has been saying that the worst is over, which I believe it is.

This is a terrific time for buyer to find a new home, interest rates are very low and theres a great selection of home to choose.
For Bambi and Suzanne, you need to be more positive.Realestate is a cycle, and this is truly a buyers market. If people wait to long , they are going to miss out AGAIN, and then we will have to listen to you people complain that prices are to high.

So the moral of this is buyers need to go buy a house, take your time and use a realtor to help you find the best deal,There are some great deals out there right now.
BUT IT WON'T LAST FOREVER.
Agent | 11.21.06 - 12:21 pm

HappyinSF said...

Wow, that guy is a jerk.
Where do people even work up there?

patient renter said...

There is so much wrong with that first comment (from the article) that I don't know where to start. I'll just remark on one [obvious] thing:

"This is a terrific time for buyer to find a new home, interest rates are very low":

Interest rates being low is only a small part of the equation in being able to afford a home. Unfortunately, homes are still completely unaffordable to many and can only be purchased by using an ARM. Take that low interest rate + an adjustable rate mortgage and you have a recipe for disaster when the "very low" interest rate goes up. This is common sense stuff, really.

Anonymous said...

If prices have doubled over 5 years and now they're discounted 10% is that a deal??? Let's say a 150k home is now 300k and the 10% discount brings it down to 270k ..... hmm, that's STILL almost double the price of 5years ago!

That's no discount! It's tomfoolery!!!

If you paid 200k for a home and want to sell it to me for 300K - I'm thinking you're trying to make a FOOL out of me - that offends me!

Headsup - there are no greater fools left in the asylum....

Anonymous said...

Is LANDER telling us that housing prices haven't peaked yet and you better jump on the bandwagon before it's too late???

That's so damn ironic - lol

happyinSF said...

Huh?

Gwynster said...
This comment has been removed by the author.
Gwynster said...

I read the comments section. It sounds like Agent needs some anger management classes. Now I understand why HappyRenter (waves)has been telling me to change my profile so that my pic doesn't show.

Anonymous said...
This comment has been removed by a blog administrator.
Lander said...

From the Record Searchlight business blog:

There are some Realtors in town who blame David Benda and me for allegedly talking down the real estate market -- like we have that much influence and power!

Well it's a minority opinion, not shared by Greg Lloyd, president of the Shasta Association of Realtors and broker/owner of Real Estate Center of Redding.

People who accuse us of singlehandedly wrecking the local real estate market -- by reporting on local and state and national numbers that clearly point to a slowdown -- are "extremely short-sighted," Lloyd told me today.

"I don't support that backlash in any shape or form. It's a story and that's what the editorial side of the paper does. We do have a small percentage of members...the squeaky wheel routine...that feel we should be influencing (the stories in the paper). You should read some of MY e-mail," he said.

"We had a helluva run the past four or five years," he said. Real estate prices for the period are up a cummulative 87 percent, he said. "Nobody complained (about the coverage) then." So far this year they're up 4 percent, which he said is a more normalized return.

Merced Going Quickly said...

This guy nails it!

Give me 5 minutes and I’ll convince you that you should sell your house immediately and invest your life-savings in gold or a Swiss bank-account.

Okay?

For some time now we’ve been hearing about the so-called housing bubble and what effect it could have on your net worth and future. Well, the numbers are finally in and you can decide for yourself whether its time to sell now or try to ride out the storm.

In 2000 the total value of homes in the US was $11.4 trillion. Today that number has shot up to $20.3 trillion; nearly double.

At the same time, mortgage-debt in 2000 was a trifling $4.8 trillion (about half) while in 2006 it skyrocketed to a whopping $9.3 trillion.

So, how do we explain these enormous increases in value? After all, wasn’t the housing boom just the natural outcome of “supply and demand”?

No it wasn’t. That’s an unfortunate myth that should be interred with the withered remains of Milton “free-market” Friedman.

If we really want to know what’s going on...

Read the entire post at
mercedgoingquickly.blogspot.com

Anonymous said...

"Prices are 10-15% off their peak."

That peak was inflated by 100%. That means "prices are still 60-80% too high".

Just wait. They'll go lower.

Or just offer HALF of what the seller is asking, Take It or Leave It. Then come back to them next year, when they still haven't sold. Just like when ghouling what little physical property dot-coms had.

Anonymous said...

Where do people even work up there?

Since the sawmills shut down 20+ years ago (the snowy owls and snail darters wave thanks), nowhere.

The only work left in Redding is:
1) Tourism (i.e. getting out-of-area yuppie scum to spend their money).
2) Casinos (see (1) above).
3) Real Estate (i.e. flipping condos).
4) Welfare checks.

Ever heard of "The Redding Dollar"? (Heard it from two guys I know who came from Redding and got out.) That's the theory that there is only one dollar in existence in Redding and everybody trades it around "selling" things to each other. Like that Beavis & Butthead episode with the candy bar fundraiser.

Merced Going Quickly said...

"The Redding Dollar" LOL!!!!

Merced Jobs
1. Farm worker
2. Chicken farms
3. UC, Merced (about 800)
4. Construction (100 loss in October)
5. RE agents/Car salesman/beauty products specialist/Amway Rep/flipper -- not no more --/appraiser/HerbalLife consultant.
6. Horrible Photoshop graphic artist for the Merced Sun-Star RE sales magazine.
7. Glamour Shots Photographer to all the RE/Mortgage professional that put their photo all over the freakin ads.

Yes, Merced is going down.

The Merced $.50

Happy Renter said...

I like the format change!
Happy thanksgiving lander and all.