Crescent City/Del Norte County real estate market report for November - Looking good!
There were 18 residential sales closed in the Crescent City/Del Norte County for November according to the CC Board of REALTORs MLS, which is 45% better than November 2008.
The increase in REO sales, low interest rates and the first time home buyer tax credit has spurred on the flurry of buying that I anticipate to continue, however it is homes priced $200,000 and under that have been selling like hotcakes pretty much all year. The reason, pent-up low to moderate income buyers that finally have homes priced in their price range along with the tax credit are snapping up homes.
According to C.A.R. Chief Economist Leslie Appleton-Young, our current market is the new "normal." C.A.R. projects one-third of all sales in 2010 will be distressed properties (short sales, REO's, bankruptcy) and the state's median price will drop to $280,000. In addition, she noted, "Sales for 2010 are projected to decrease 2.3 percent."
The low-end market is going to continue to attract first-time buyers and investors, which will more than likely result in low inventory in the low-end price range, however seller's in high-end homes will continue to be challenged by buyers struggling to secure financing from banks that are tightening lending standards.
What does it all mean? Del Norte County's median price for November was $180,000, up from October's $160,000. The median price has been below $200,000 for most of 2009 and I project this trend to continue. Although the $200,000 and under price range is 40% of active listings it comprised 67% of November sales! 44% of all November sales were foreclosed properties. That price range is really hopping.
We have quite a bit of new construction going on in the Crescent City/Del Norte County real estate market with new homes in the Bay Meadows and Redwood West subdivisions as well as a new home priced at $199,000 (my listing). The move-up buyer tax credit of $6500 as well as FHA and USDA GRH financing (good interest rates) should help to spur on buyers in the $200,000 to $300,000 price range. We have many brand new homes for under $300,000. Call me and I'll be happy to show them to you.
C.A.R. also pointed out that although banks seem to be monitoring their foreclosed homes inventory, a lot of experts agree there may be a backlog of REO's building up and if the flow of distressed properties onto the market becomes too great, downward pressure on home prices may be heavier than expected in 2010. In plain English, prices will fall more than projected; therefore, if you need to sell your home and you are in the lower end price range, sooner is probably better than later. This actually holds true for upper-end homes as well since declining prices affect the market overall.
Please give me a call if you would like to discuss the Crescent City/Del Norte County real estate market in more detail and for all your local real estate needs.
Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran Gatti. Put Fran to work for you!
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*PER CCMLS
