The purpose of this page is to give you a current view of the Humboldt County real estate market. I update this page every few months to give you important information, which can be valuable in guiding your buying or selling decisions.

Background

Historically, our local real estate market has been relatively stable compared to the metropolitan areas of the state. From the late 1970's into 2001, local home prices increased gradually. When prices boomed in the bay area and southern California in the mid 1980's, they increased at a more modest rate here. Conversely, in the early 1990's when home prices fell 15 to 20% in the metro areas, they remained level here.

Between 2001 and 2005, however, Humboldt County -- like other parts of the state, experienced a boom in real estate prices, with home prices more than doubling. During this period sales volume (the number of homes sold) also increased dramatically. Most homes were sold at full price or above, with multiple offers being common. By early 2006 the market had peaked and sales volume slowed and the number of homes on the market began to increase.

Between 2005 and now prices have declined about 30%.

Current Conditions

For the first time since 2005 home sales for the year increased over the previous year. The number of homes sold in 2011 rose 6% over the number sold the previous year. The slight increase in sales volume did not cause a rise in prices. The local market is still soft, although the low end of the market where many of the foreclosed and "fixer" homes are has been quite active. Often there are multiple offers on these homes. Last year about 20% of the homes sold were bank owned, or foreclosed homes. About 6% of the sales were "short sales." (A short sale is where the home is listed for less than the mortgage balance and closing costs, and the lender agrees to takes a loss ).

Interest rates are currently very low -- around 4%. This is the lowest they have been in over 40 years.

Advice for Buyers:

With interest rates so low, prices still soft, and sales activity picking up, it appears to be a good time for buyers who have been siting on the fence to think about buying a home. For someone planning to own a property for over three years, this is a good time to buy. Having a current pre-approval by a mortgage lender is essential in negotiating with a seller. To keep purchase costs down, consider having the seller credit you most of your closing costs. Contact me for further information.

Advice for Sellers:

You must realize that home prices have dedlined about 30% from their 2005 levels. If you bought your home in '05 or '06, your home is worth less than you paid for it -- unless you've made substantial upgrades. However, if you will be buying another home when yours sells, you can take advantage of favorable buyer conditions on the buying end.

It is critical to price your home competitively. It's important to look at recent sale prices of comparable homes, NOT asking prices. A knowledgeable broker can render an accurate opinion of value and should be relied upon when pricing a home for sale. Home appearance is of greater importance now, than in the seller's market we had a few years ago. Clean, sharp looking homes sell quicker -- and at a higher price, than homes with deferred maintenance. Ask for my free report, "Marketing Tips To Prepare Your Home for Sale."