homes – Parsons Realty

Shasta County Home Sales For November 2010

Shasta County Home Sales Chart Nov 2010 — Shasta County Homes Sales & Inventory Chart Nov 2010

Shasta County home sales were down when compared to the same time last year. In November 2010 there were a total of 160 homes sold in the Shasta County MLS, that is down from the 172 homes that sold in November last year.

In the city of Redding there were a total of 86 home sold and an average sales price of $225,000. That is down from the average sales price of $235,000 in November 2009.

The average sales price for all of Shasta County in November 2010 was $208,000, this is also down from last year’s average price of $210,000.

Inventory has been dropping as well, as of today there are 1,352 homes on the market. The drop in inventory is fairly normal for this time of year however, we have not been below 1,400 homes in quite some time.

REO’s and short sales are still a large percentage of the homes that are selling, 50% to be exact. We had a total of 66 REO’s and 14 short sales sold last month. That is a larger percentage of the total sales than the same month last year. November 2009 had 57 REO’s and 21 short sales close escrow making distress sales 45% of the total sales.

One would guess that inventory will continue to drop until after the New Year, most people are not going to be putting their homes on the market during the holidays. With the number of homes taken back by the banks continuing to decline (only 68 in November compared to the average of 98 over the last four months) we expect inventory stay around 1,400 until at least spring. Hopefully this will be some good news for home sellers.

Shasta County MLS Nov 2 Year Sales Chart

All sales information is from the Shasta County MLS and is deemed reliable but not guaranteed.

Shasta Hills Estates – Redding

Shasta Hills Estates is one of the best kept secrets in Redding for those 55 and up.

The gated entrance off of Churn Creek Rd is quite impressive. The build quality of the homes is top notch and the location is close to everything. Many of the homes have impressive views and there’s the clubhouse, swimming pool golf and walking trails to top off this gem of a subdivision. Last but not least, I have found the residents of Shasta Hills to be friendly and welcoming to newcomers.

All of the clients I have assisted in acquiring homes in Shasta Hills have been very happy with their decision.

More information and a current list of homes for sale in Shasta Hills.

What Does REO Mean?

As a Real Estate Broker I often get asked “what does REO mean?” REO is an acronym for real estate owned and is used in the context of foreclosed properties owned by the lender or bank. Typically, after foreclosure, the bank will list the property for sale. It’s cost prohibitive for banks to hold a vacant house for very long. As of this writing, the total number of REOs for sale in Redding and all of Shasta County is 235 houses. So it’s fair to say, if you’re looking for REO houses, there a lot to choose from in Redding and the surrounding areas.

Just because a property is bank owned does not automatically mean the property is a bargain. It’s not uncommon for banks to charge a higher price for their REO inventory as they must recoup financial losses from unpaid mortgage payments and the cost of foreclosing and possibly paying back taxes etc. Further, people losing their home may not have kept up with routine maintenance, or in some cases, may have intentionally damaged the property and or removed appliances, plumbing and lighting fixtures. However, this does not mean you can’t find a great deal on a foreclosed house. There’s no such thing as the last good deal in real estate, great opportunities happen almost every day. The trick to finding great real estate deals is to know about them before anyone else. The analogy I like to uses is, how long does a $100.00 bill last on the floor at K-mart? Less than a minute. A great REO property is worth a lot more than finding a $100.00 bill. Therefore, get the REO list before others and you’ll undoubtedly find some real gems.

Finding new REO listings the same day they’re posted to the Shasta County MLS is easy. Our home page at www.ParsonsGroup.com has a link to our Real Estate Hot Sheet. The Real Estate Hot Sheet is updated daily and every new listing in Shasta County is on the list. Just watch the list and you’ll know about new listings before most other buyers. We also have our Listing Alert Service which sends you the new listings matching your search criteria such as price, location and square footage. You can choose to receive the notification real time by email, instant messenger, text message or telephone voice notification.

Okay, you’ve found a few houses of interest, now what. As fast as you can, you should go and look at the houses in person. Most REO houses are vacant and I can open up the house with my lock box card. It’s very important to get inside to check the condition. As you may already know, banks offer foreclosed houses for sale in their “as-is” condition. Typically, the banks are not willing to make any repairs and they don’t offer any disclosures regarding property defects. This means, buyer beware! When I show REO properties, some major defects are often visible right away (I was a contractor for the last 25 years of my life.) Other defects are more subtle or may not be visible at all until you go in the attic or sub-area of the house.

When you think you have found an REO bargain the next step is to get control of the property so you can do your inspections. Buyers often make the mistake of attempting to inspect the property first and then write an offer. As this may seem logical at first, the plan can back fire when a shrewd investor finds the property the same time you do. The shrewd investor knows to get an offer accepted by the bank and then fully inspect the house. A good purchase contract has provisions for the buyer to inspect the property during escrow. If, after completing the inspections the buyer decides not to proceed with the purchase, she simply cancels the contract. What the investor has done in this scenario is contracted for the right but not the obligation to purchase the house. Imagine poor Joe, the newbie REO investor; he calls his brother-in-law and they spend all day checking out an REO house. After the property meets Joe’s approval he decides to write an offer. Sorry, it’s too late! Ms. shrewd investor has already taken the property off the market and will be doing her inspections next Thursday.

Like many things in life, timing is everything, you must know about all new listings as soon as possible. There are many more strategies and tips you can use to find houses and then negotiate the lowest possible price. Next you must know how to write offers banks and sellers absolutely hate but are afraid to reject. I will share my thoughts on those topics in future posts. Also watch for an upcoming post on Short Sales – The Greatest Opportunity of a Lifetime.

Until next time…

Now You Can Search The Shasta County Multiple Listing Service (MLS) for All Properties. Redding MLS Search

Pending Home Sales Decline by 2.6% in June

Pending home sales edged down with near-term sales expected to be notably lower in contrast to the spring surge when buyers rushed to take advantage of the home buyer tax credit, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator, declined 2.6 percent to 75.7 based on contracts signed in June from an upwardly revised level of 77.7 in May, and is 18.6 percent below June 2009 when it was 93.0. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said lower home sales are expected in the short term. “There could be a couple of additional months of slow home-sales activity before picking up later in the year, provided the job market continues to improve,” he said. “Over the short term, inventory will look high relative to home sales. However, since home prices have come down to fundamentally justifiable levels, there isn’t likely to be any meaningful change to national home values. Some local markets continue to show strengthening prices.”

Yun expects mortgage interest rates to remain historically low for the balance of the year, with very modest growth in employment. “We really need to see stronger job creation to have a meaningful recovery in the housing markets,” he added.

The PHSI in the Northeast dropped 12.2 percent to 58.8 in June and is 25.4 percent lower than June 2009. In the Midwest the index fell 9.5 percent to 64.1 and is 27.8 percent lower than a year ago. Pending home sales in the South rose 3.7 percent to an index of 85.8, but are 13.3 percent below June 2009. In the West the index slipped 0.2 percent to 85.1 but is 14.2 percent below a year ago.

1242 Rose Ave, Redding CA

Eclectic house in Central Redding is packed with ideas…modern colors, updated kitchen vaulted ceiling and wood stove. Plenty of room for you, your studio and a garden. Detached unit with bath, kitchenette and separate electric meter. Perfect setting for creative individuals interested in urban homesteading.

1225 Washington Ave, Shasta Lake CA

Nice setting amongst the trees and close to Shasta Lake. Good sized family room, upgraded kitchen with dishwasher & disposal. Updated bathroom, cabinets, sink and fixtures. Central heat/air, attached 2-car garage with storage and automatic door. Newer roof with warranty, deck overlooks backyard and above ground swimming pool. A nice clean home in this price range, you won’t be disappointed.