The purpose of this page is to give you a current view of the Humboldt County real estate market. I update this page monthly 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, 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 the number of homes on the market decreased as demand increased. Most homes were sold in "as-is" condition, often at full price or above, with multiple offers being common. By fall 2005, the market had peaked and sales volume slowed while the number of homes on the market began to increase.

By mid 2006 the inventory levels were high with over 800 homes listed for sale. From 2006 to present sales prices declined approximately 15% from the high peak in mid 2005. Prices began stabilizing during late 2007 but are still soft.

Current Conditions

The number of homes sold in 2007 declined 9% from year 2006 figures according to MLS data. There were about 10% fewer homes on the market in 2007 which helped soften price declines. At present there are about 620 homes for sale. Last April there were slightly more homes on the market. Sellers are getting adjusted to the price declines of last two years and many are beginning to price their homes more realistically. Sales have been sluggish the first quarter of this year with closed sales down over 20% from the the first quarter of last year. Of course that could change as the year progresses, but it I it is more of a buyer's than a seller's market. We are in relatively good shape, however, compared with other parts of the state (and of the country) where conditions appear to be worse than in Humboldt county.

There's been a lot in the news lately about the national housing market. Lenders tightened their requirements in the last several months and have become more conservative with non-conforming loans. Fortunately, the great majority of home loans are conforming loans, which have not been affected. But the easy money available in the first half of this decade helped fuel the boom during the first half of this dedade.

As we move through spring -- usually a time of increased activity, we should see an increase both in homes sales and the number of homes on the market.

Advice for Buyers:

Conditions favor buyers since prices are lower than they were two years ago and prices are soft. If you plan to own the property you purchase for at least three years, this is a good time to buy. Having a current pre-approval by a mortgage lender is essential. If you were pre-qualified several months ago, you should have your loan officer pre-qualify you to current standards to make sure nothing has changed.To keep purchase costs down, consider having the seller credit you most of your closing costs. Contact me for further information.

Advice for Sellers:

Home prices have been stabilizing over the past several months, but foreclosures have increased and bank owned properties are entering the market and competing with privately owned residences. If you will be buying another home when yours sells, you can take advantage of favorable buyer conditions on the other end.

It is critical to price your home competitively. Many homes currently on the market are still overpriced, given the market's decline. So it's important to look at recent sale prices of comparable homes, NOT asking prices. A knowledgeable broker who can render an accurate opinion of value 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 couple 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."