Crescent City/Del Norte County June 2009 closings are up, so far 24% over May 2009 and the month isn't over!
Since closings are generally 45 - 60 days, we can attribute the below 5% interest rates in April for this flurry of closings.
But what about the coming months? There are currently 33 listings pending or in contingency status, about the same as when I checked in April, so it looks as though closings will be up for awhile. Interest rates, although inching upward, are hovering around 6%, which is still very good and Crescent City/Del Norte list prices are still coming down. It is still a buyers market, however buyers can expect competition and mulitple offers on the below market priced REO's that are hitting the market with greater regularity.
There is talk that the $8000 first time home buyer federal tax credit may be extended past the November 30th deadline. That may keep this rally going past the busy summer season despite the inching up of interest rates. The $10,000 CA New Home Buyer tax credit is spurring on purchases of new home construction as well. That credit ends when the money the state has set aside runs out, so better check before your purchase and see if you will actually qualify and if funds are still available for the credit.
Crescent City/Del Norte County inventory is still high in comparison to the amount of homes that are selling, but the absorption rate is at a much healthier 12 months, versus the almost 23 months we have been experiencing. The absorption rate is how long it would take to sell all inventory at the current sale rate of 21 homes a month.
In order to have a home sell in this market it has to be competitively priced. Competing with REO's and extremely motivated sellers may give homeowners who do not really need to sell pause to wait until foreclosures decline and inventory shrinks a bit. Otherwise, you may be faced with a long Days on Market, a shop worn listing, and a frustrated real estate agent who wants very much to sell your home for you, but finds that despite their best efforts to price your home for the current market, you "Aren't in any real hurry," "Don't really need to sell at this time," or "Aren't going to give your home away." If this is your mind set, in my opinion it would be much better to wait until prices come back up to where your home is properly priced for the market.
Your home is only worth what a ready, willing and able buyer is going to pay for it at that moment in time. Ask your real estate agent to show you comps that can give you a price range that will get your home sold. If your home is listed and has been on the market for more than 60 days, you may want to ask your agent for a new market analysis, but be warned, you may not like what you hear; prices are still coming down in Crescent City/Del Norte County.
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
