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, 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 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.

Between early 2006 and late 2009 prices declined about 20% and the number of homes sold per year has decreased each year -- until last year.

Current Conditions

2009 saw the first increase in home sales since sales volume began declining in 2006. Between July 1st and December 31st the number of homes sold increased 16% above the same six month period in 2008. This corresponds to what we've been hearing in the news about home sales starting to pick up around the country.

The $8000 Federal tax credit has had an impact. Originally scheduled to end last November, it has Been extended through April 30th. Combined with interest rates in the 5% range, buyers have been stepping back into the market. It will be interesting to see if sales continue to hold up as we enter spring, when home sales are seasonally strong.Prices have not increased as yet. Sales activity will probably need sseveral months of strong sales volume and continued low interest rates will be needed before we see price increases, in my opinion.

Advice for Buyers:

Conditions favor buyers since prices are still lower than four years ago and fears about the economy may keep some buyers on the sidelines for a while. However, If you plan to own the property you purchase 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 20% 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 other 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."