As I reported in an earlier post business seems to be picking up for all of us in the real estate business. We are getting calls from other offices to show our listings, we are showing listings from other offices, and yes, we're even writing offers. I am not going to say anything about trends here because I am simply not qualified to speak on that, but the phone is ringing a lot more than it has over the past year.
Here are some numbers to illustrate: our office (Coldwell Banker, Scott Valley Real Estate) sold $2,260,000 worth of homes since January. There are 30 real estate offices in Siskiyou County and that makes us # 2 in dollar volume which totaled $18,944,775 just so far this year.
2004 was the peak, when 558 homes sold county-wide. It has slid downward steadily since then to about half___267 in 2008. Average sold prices though topped out in 2005at $278,171 and are down to an average of $231,764 in 2008.
So, volume is down nearly half but prices not nearly as much. However, this is for the whole county and does not line up 100% with what we are seeing here in Lake Shastina. Here we are watching the inventory of unsold homes slowly sink back to a manageable level. This morning it stands at 81, down from a high last fall of 105. Of course in the 2004-2005 peak years it was around 50 on any given day and that's when buyers were making full-price offers.
So there are still too many homes on the market. This is evident to us through our property managment practice, too. Many sellers get frustrated and move their homes into rental to generate some cash so the 80 figure is not entirely trustworthy. Add to that mistrust the fact that some homes are in default or outright foreclosure.
The point is we get buyers asking for these and unless the bank or the owner also put them on our local multiple listing service, we don't see them. We have noticed an uptick in bargain hunters though, compared with prior years. People who might not otherwise be able to afford a home are making aggressive offers that sometimes fly but it is interesting to note that the effort takes much longer than when the market was more balanced.
The secret seems to be homework___if you are planning to invest, do as much upfront as you can. Get your funding in hand. Research the area you hope to buy in. Explore what is for sale with a licensed Realtor. Ask for sale comps, not just what is for sale because what actually sells is the reality check. All too many sellers fail to realize that little step.
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