Crescent City Real Estate News

Crescent City/Del Norte County Market Report for June 2010 - Encouragement for sellers

I'm going to write an encouraging market report for a change.  Don't get overly excited, however...

The median price was still low at $145,000 for residential listings sold in Del Norte County for June, however, there were 19 sales, the most in one month so far this year and two sales over $300,000, one for $435,000 and the other for $356,000 (an REO).  The home that sold for $435,000 has an ocean view and sold for $115 a square foot, down from the high of a few years ago when ocean view properties were selling in the upper $200's a square foot. 

It shouldn't come as a shock that the Del Norte County real estate market has declined 40% since the high in 2006 and continues it descent.  Sorry I forgot I was writing an encouraging report.

There are currently 291 active residential listings on the market.  At the current rate of 19 sales a month, we have an absorption rate of 15 months, down from the high of 22 months.  If you are selling your home, that should be encouraging. 

However, you knew a "however" was coming, four of those 19 June sales were REO's and 2 were short sales.  These types of sales continue to add to declining home values along with financing that is very difficult to obtain and economic hardships being felt in every sector, including Del Norte County's largest employers, the State of California as well as other government entities.  Employees are getting squeezed at every turn right now, expect one, home prices if you're a buyer! 

Homes in the under $200,000 range are selling at a brisk pace, 74% of June sales, giving first time home buyers a chance at the American dream and investor's a better return on their money than they can get in most venues.  Del Norte County's median price is $229,000. 

Give me a call if you are trying to sell your home, are thinking about selling your home or want to purchase a home.  I am happy to discuss current trends in the Del Norte County real estate market and how you can meet your real estate goals in the current market, even if you need to sell. 

Fran has sold 9.06 of the volume so far in 2010 (next closest agent has sold 6.71), more than any other agent and has sold more listings than any other agent.  Fran attributes this to knowing the Del Norte County real estate market and working full time, being accessible to her clients 40+ hours a week.  Give her a call to reach your real estate goals, even in this market!

       

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!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Crescent City/Del Norte County Real Estate Market Report - May 2010

Number of residential sales improved over April 2010 and May 2009 sales, however the median price has dropped 21% from the May 2009 median of $180,000. 

The effect of foreclosures, declining prices, can not be denied. REO (foreclosure) sales comprised 56% of May 2010 sales and 37% of sales so far for 2010.

Upper end sales continue to remain stagnant with only two homes closing in May over $300k and one of those sales was an REO.  So far in 2010 homes $300,000 and over were 11% of total residential sales.

What does it mean?  It's a buyers market and there aren't a lot of buyers.  The buyers that are out there are experiencing a difficult time getting pre-approved (even with the best of credit) and escrows are taking longer than usual to close, upwards of 60 days or more, as well as having to overcome many hurdles along the way, appraisals just to name one. 

If you must sell at this point in time, your home needs to be priced competitively for your price range.  Buyers who do make it successfully through the mine field of pre-qualification expect nothing less than an all out bargain.  If you don't have the stomach for that, you best wait until the market picks up a bit for sellers.  That may be awhile though and prices, in my humble opinion, are going to continue to decline so you better take that into consideration.

I work with quite a few asset managers, the folks banks contract with to liquidate their foreclosures, and they all agree that we have not yet seen even half of the foreclosure inventory hit the market.  Banks seem to be holding onto a great deal of inventory for whatever reason and when these homes do enter the market, they will have a negative effect on home values in their neighborhoods. 

Here is the market at a glance for May, 2010:

• May 2010 median price - $142,500, median price for May 2009 - $180,000
• May average price - $162,306
• Average days on market - 156
• 2 homes sold over $300,000, one of those was an REO
• 56% of May's sales were REO's
• 37% of all 2010 residential sales were REO's
• 2010 average sale - $169,689
• 2010 median sale - $161,000
• 2010 average days on market - 177

If you have questions about pricing your home in this market, please give me a call.  I would be happy to give you current market data for competitively pricing your home.

I have sold more homes, both in volume and number of sales so far in 2010 than any other agent in my market.  The reason, I work full-time, market my properties extensively on the internet and return prospective buyers phone calls and emails quickly.  My goal is to give the best customer service available in Del Norte County.  Please give me a call with your Del Norte County real estate questions.

       

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!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Del Norte County Market Observations - April 20, 2010

I haven't been blogging too much in 2010, the reason?  My REO business is increasing along with my regular listings and it's keeping me busy, but I still have time to watch the market closely and I have noticed some trends that may be helpful for buyers and sellers in this market.

My first observation for our current market:

• The shift seems to be from homeowner REO's to investor REO's - The majority of the REO listings I had in 2009 were owner occupant, but I would say 90% so far this year have been investor owned and the tenant didn't know a thing until the very end when I showed up to offer Cash For Keys.  I have also noticed that many investor's have more than one home, bringing several REO's to market in a short period of time.  I expect the REO trend to continue.  I have read that many experts feel we have only seen 35% of the anticipated foreclosures hit the market. 

Bringing us to observation number 2:

• Prices are falling- The Beresa tract of homes would be a good example.  Prices at the height of the market in 2005 were in the mid to high 200k range.  Homes have fallen in price over 50% since that time and continue to do so.  I have an REO listing in that tract for $114,900 and two more coming up within the next few weeks. I expect those prices to be at the $100,000 mark.  This affects more than REO's. If you are living right next door or even a block away and want to sell your home, you have to compete. 
  
  Even if your home is in better condition, the REO listing is still going to effect the price of your home.  If not in the offer price, it will in the appraisal.  The appraiser will no doubt take into consideration the fact that your home is not a distressed property, but in the case of the Beresa tract and many others, the appraiser will be hard pressed to find a comparable to use in his report that is not a distressed property let alone three comparables.

With the decline in sales, new home construction in Del Norte County has slowed but thankfully, it still exists.

Bringing me to observation number 3:

• There are some good deals on new construction and if you hurry, you can cash in on the California tax credit for purchasers of newly built homes - This tax credit is a pool of money that is first come, first served and with a plethora of new construction all over the state, it's going fast. 
  
  
  
  • There are some benefits to buying new construction:

     

    • A one year warranty on workmanship
    • New appliances, water heater and new everything that all comes with warranties
    • Generally energy efficient to meet the newer guidelines for construction
    • Two brand new subdivisions: Redwood West and Bay Meadows

Observation number 4:

The decline in prices has brought homeownership to buyers who have been priced out of the market for years, and, we have financing for them!

• All of Del Norte County meets the criteria for rural housing, making the GRH rural housing loan program one of our major financing programs for low to moderate income folks.  Yippee to this.  I personally enjoy handing the keys to first time home buyers, especially buyers who never thought they could purchase. 

• Consider that the median home price for homes sold so far in April is $101,000, the range for first time home buyers.  I know I've handed keys to several first time home buyers in the past few months.  Also consider 50% of sales this month have been REO's.  Guess who is snapping them up? 

Bringing us to observation number 5:

• It's a great time for the investor to purchase - Rents are increasing due to low supply of rentals and increased demand.  Investors are tired of getting 1% on their money and are pouring money into the real estate market to cash in on the great deals that the first time home buyers are enjoying.

• Homes in the lower price ranges are experiencing multiple offers and bidding wars in many cases (if they are priced right).  This is something that should catch the attention of sellers in every price range.

Concluding with observation number 6:

• It's tough to sell an upper end home right now - So far this year only three homes have sold in the $300k price range and no residential listings have sold over $368,000.  If you want to attract buyers in the upper end price range, you must have the most competitively priced home in your price range.  There are very few buyers and plenty of listings, so get your game face on and be ready to compete for those buyers by offering an incentive such as paying a % of buyers closing costs. 

Six parcels of land, two commercial listings and the first multi-family sale in over a year round out the activity for sales so far in 2010. 

The real estate market is still moving in Del Norte County, however, lower-end, extremely affordable homes are what is driving the market at this point.  If you are a buyer, you must be pre-approved with letter in hand to compete for listings in this price range.  Asset managers who handle negotiation's for bank owned properties will not even look at an offer unless the buyer has either their proof of funds or pre-approval letter and if you are a seller, get ready to make your home sparkle and list at a competitive price to sell in a timely manner.

I am happy to answer any of your questions pertaining to Del Norte County real estate.

       

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!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Crescent City/Del Norte County real estate report for March 2010

March improved over February 2010 with 22% more sales.   The strong sector of the market continues to be in the lower price ranges with 57% of March sales under $150,000.  REO's were a huge segment of March sales at 43% (REO's are foreclosed properties listed for sale on the MLS).

Although the federal tax credit is disappearing at the end of this month, the State of California, deep in the middle of a budget crisis, has passed legislation for first time home buyers and purchasers of new construction to receive 5% of the purchase price or up to $10,000 in tax credits.  This should give California home sales a badly needed boost. 

Here is the market at a glance:

• March median sold price - $147,750
• Average DOM - 195
• Percentage of REO's sold - 43%
• Current number of active residential listings - 247
• Number of residential listings sold in March - 14
• $150,000 and under - 8
• $180,000 to $262,500 - 5
• 1 home sold for $350,000

Breakdown of current residential listings:

• under $200k - 115
• $201k - $300k - 61
• $301k - #400k - 29
• $401k - $500k - 9
• $500 and up - 33
• Current number of REO/short sale listings - 31

I project REO's to continue to be a force in the Del Norte County real estate market based on my experience as an REO listing agent.  My REO inventory has increased rapidly as of the first of the year and shows no sign of tapering off anytime soon.  Click here to take a look at my current REO inventory. REO's are an excellent investment for the the investor and first-time home buyer.  These type of listings generally come on the market at below market value for a quick sale.  Call me with questions about how to purchase on REO.

RE/MAX Coastal Redwoods has a nice inventory of new construction and build-to-suit homes in two brand new subdivisions.  Click here to take a look at one of our subdivisions.  Please call me with questions regarding purchasing a newly constructed home or build-to-suit in Del Norte County. 

As always, I am at your disposal to answer any questions you may have about Del Norte County real estate and I am just a phone call away for showing you ANY Del Norte County listing.  I am a full time agent and sold more homes in volume and number in 2009 and so far in 2010 than any other Del Norte County real estate agent.  This is because I work full time, have a great marketing plan and give you, my client excellent service.  Thank you for reading my blog.

       

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!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Crescent City/Del Norte County Real Estate Market Report for January 2010 -

January 2010 had 43% more sales than January 2009and only 2 of those 14 sales were REO's, which is encouraging. 4 of January's sales were mobile/manufactured homes in parks bringing in the median price sale for the month at $163,000. 

Listings are at a seasonal low of 223 with the median price of listings at $229,500 and average days on market at 223.

For listings $200,000 and under, the DOM for the 98 listings in that price range are 168 days or 14 months.  The average DOM for listings above $200,000 is a whopping 253 DOM (or 21 months) for those 128 active listings.  The upper end homes are really taking a beating right now.   

REO's (foreclosed homes) make up 14% of all Del Norte County listings right now with most REO's selling in under 60 days. 

Last year most of the REO's I dealt with were owner occupy, but I'm seeing a definite increase in investor held foreclosures.  I think we are going to see foreclosures increase for the coming months with their continuing influence of lowering prices.  Click here for suggestions on purchasing Del Norte County foreclosed listings.

If you must sell in this buyer's market, be sure to have your home competitively priced and use a reputable, full-time agent who tracks your market.  Proper pricing is where it's at. 

Please call me if you're looking for an agent; I will be happy to give you an assessment of your property based on trends and my knowledge of the Del Norte County real estate market. 

Fran sold more homes in 2009 both in number and volume than any other Del Norte County agent.  Put her knowledge and experience to work for you!

       

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!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Crescent City/Del Norte County Market Report for October -

November has been a very stressful month as far as keeping escrows moving forward goes and I have put most of my time and attention into making sure the homes I have in escrow make it to closing; my clients deserve no less, however, that meant my market report and blogging in general was put on the back burner. 

I am feeling a little less stress and will spend the next few days getting caught up on various things including my market reports. 

October was an exciting month with 43% more closings than the same time period in 2008.  We can thank the first time home buyer tax credit for a flurry of buying as well as declining prices and low interest rates.  Rates are still low, the tax credit has been extended and prices are still coming down, so I anticipate we will continue to see investors and first time home buyers snapping up the affordable homes.  With the advent of the "move-up" tax credit, we may see an upsurge in sales in the over $200,000 market as well.

The median price for homes sold in October 2009 was $160,000, which is an improvement over September's abysmal $150,000.  42% of the homes sold in October were REO's or short sales, but REO listings make up less than 10% of the active listings. 

What does it all mean?  REO's are still a huge force in the Crescent City/Del Norte County real estate market and will continue to be throughout 2010.  My personal experience with listing REO's is that they are taking longer and longer to get through the pre-listing process and onto the MLS for sale. I perceive we will see a glut of REO listings in 2010 due to backlogged inventory that overwhelmed banks are trying to process.   This will in turn cause prices to continue to decline.  The Crescent City/Del Norte County market will not see a stabilization in prices until REO listings taper off, hopefully by the end of 2010. 

If you are a seller, inventory is low this time of year and it could be an opportunity for your home to shine in this environment of less competition.  The buyers are still out there looking for a bargain.  Your home needs to be competitively priced, so don't jump into this market unless you are prepared to beat out the competition.

Do not hesitate to call me if you would like more information on the Crescent City/Del Norte County real estate market.

       

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!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Crescent City/Del Norte County Real Estate Market Report for September 2009 - Number of sales were down.

Sales were down for September, however I expect a sizable increase in number of sales closing in October (keep reading for the reasons for this optimism). 

The median price home that sold in September was $145,000.  This supports my statement I have made 100 times or more over the past few weeks that, "What is selling is $200,000 and under." 

Why?  This segment of the market was shut-out for years because of skyrocketing housing prices and now, these home buyers are taking advantage of falling prices, awesome interest rates and the federal income tax credit of $8000 which goes away on December 1, 2009.  I've heard rumor the tax credit will be extended, but I have not seen anything official as yet.  If anyone can provide a link to an official statement on the subject in a comment on this post, I would be grateful.

What does it all mean?  It is a buyer's market and will continue to be, in my humble opinion, until foreclosures level off and decline to levels prior to 2008.  Everything I have read (that I trust) says foreclosures have not peaked yet and are expected to do so sometime in late 2010.

If you NEED TO SELL YOUR HOME, now may be the time to get serious about what comparables say is the true value of your home in THIS market.  Ask your agent to pull up comps from the last 30-60 days if they are available and price your home in the bottom half of that range or at least close to the halfway mark if you need to sell.  The Crescent City/Del Norte County real estate market historically slows way down November through February, so price your home to sell now if you need to sell.  If you don't, don't worry about it.  Springtime will come, the flowers will bloom, buyers will come back, but prices will more than likely be lower due to a continued influx of foreclosures.

Here is the market at a glance:

There was 1 commercial sale in Sept., no land sales.

And August's figures:

Seller's, don't get discouraged just yet. Only one of the September sales in the Crescent City/Del Norte County real estate market was a foreclosure versus 21% of sales in August.  The seller's who are pricing to compete with foreclosures are selling!  I have several clients who have priced their homes for THE CURRENT MARKET with good results.  Call your agent and ask for a CURRENT market analysis; using current market data to price your home may bring you the sale you've been looking for.

       

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!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Crescent City/Del Norte County Real Estate Market Report for July 2009 - Gettin' Better Everyday!

July's sales increased over June's encouraging figures with 26 escrows closing in Del Norte County.  21 of these were residential listings (33% of those sales were REO/short sales), the other 5 sales were vacant land.

A whopping 57% of sales in July were $199,000 and under with the median price increasing in July to $193,500. This figure was greatly enhanced by the only sale so far this year over $599,000, an ocean view home that sold for $750,000.

There are currently 278 active residential listings with an absorption rate of just over 1 year, which is an improvement over the high several months ago of over 20 months.  The absorption rate is how long it would take to sell all current inventory at the rate of 21 sales per month, in this case 13 months. 

What does it all mean for buyers?  REO/short sale listings currently comprise about 6% of the listings, but 33% of sales with multiple offers and usually those offers come in the first day of the listing.  If you are interested in purchasing an REO property, you must have all your ducks in a row, which means you have a pre-approval letter in hand when you start looking. 

The prominent form of financing in Del Norte County is the USDA Guaranteed Rural Housing Program. If you do not know about this program, please read this post.  Out of my current open escrows, 72% are financed with the GRH program and why? Please read the post and then call me and I'll refer you to a lender who will see if you qualify, and then... I will find you a home. 

Also buyers, be aware that the $8000 federal first time home buyer tax credit expires 12/1/09, which means you need to get moving to get your check!

What does it mean for sellers?  If you are selling a home $250,000 and under and competitively priced you should be able to sell your home quickly.  How do you know if you are competitively priced?  Ask your agent.  They should know what's selling and be able to provide comps that will give you a really good idea of the price range that will produce a timely sale.  If you NEED TO SELL, your home must be competitively priced...I can't stress that enough. 

I currently have sold 9% of the volume on our MLS for 2009.  I have been successful selling my clients homes because I watch the market like a hawk and I do my best to keep my clients listings competitively priced.  Listen to your agent and if you do not like the price range your real estate professional suggests, wait until prices tick back up to sell. 

There you have it, real estate 101.  Be the nicest home for the price and you will sell.

Here's the market at a glance:

Here are June's months stats:

Click here to see past market reports.

If you have any questions about buying or selling real estate in Del Norte County, give me a call.  I will give you an honest answer and base what I have to say on sound market research of all pertinent data.

I am here to assist you with all your Crescent City and Del Norte County real estate needs.  Thank you for stopping by and please leave a comment.

       

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!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS