Foreclosures and short sales are currently representing approximately 55% of the total monthly sales in our market. Other markets are experiencing a much higher percentage of distressed property sales. The major reason Shasta County is not at a 70-80% foreclosure level is because Shasta County did not overbuild to the same numbers as other markets.
The first time home buyer credit which expired at the end of April has some fine print that the IRS is now bringing up. The 2008 first time home buyer credit was considered a loan that would be repaid over a 15 year period. The IRS is stating that many would be recipients have incorrectly filled out their tax return.
Interest rates are still at an all time low with 30 year mortgages hovering around 4.5%. The median sales price in August was $164,500. With a typical 5% down payment, the payment for principle and interest would be approx $786. Throw in taxes and insurance and you’re left with a clean 3 bedroom 2 bath home with a 2 car garage in a good neighborhood for just under $1,000. That’s cheaper than rent!
Sales volume was down compared to last year. Sales in August peaked at 168 sales compared to 185 in August of 2009. Pending sales volume was up however, with 252 new pending sales in August compared to 223 pending sales in August in 2009. The real estate market for the summer of 2010 is on track to be a lot like the summer of 2009.
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