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 now (2009) prices have declined about 20% and the number of homes sold per year has decreased from the record high in 2005 for each year since.

Current Conditions

At present there are about 665 homes for sale -- about 10% fewer than last year at this time. The inventory typically peaks in the July to September period. So, we'll probably peak at about 700 listings over the next couple of months. The number of closed sales is running about 9% below last year's numbers at this time. The number of closed sales was down 20% last year from 2007. It is still more of a buyer's than a seller's market. Interest rates have reached their 5 year lows, with 30 year loans available at 5%. Lenders are busy with refinances and buyers are taking notice of these favorable rates.

We remain in relatively good shape compared with other parts of the state (and of the country) where conditions are much worse than in Humboldt county. The fact remains that a home purchased in 2003 or earlier is still worth considerably more today than it was then.

Advice for Buyers:

Conditions favor buyers since prices are still lower than four years ago and fear 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 probably 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. 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 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."