DEAN KESSLER of THE KESSLER REAL ESTATE TEAM in EUREKA reports that in the December 2008 reported real estate sales there is both good news and bad news. The bad news is that home sales slumped down 32 % when compared to December 2007. And the average sales price of a Eureka home dropped 15% from one year ago. Now for some good news, instead of shopping in the malls a lot of buyers instead opted to shop in neighborhoods. As a result the number of home sellers that accepted buyer offers last month catapulted up 56% from our December 2007 report. There’s even better news as interest rates remain very attractive around 5% and our local lenders tell me there is plenty of money to loan for home purchases.
The chart below shows real estate activity for the Eureka area as compared to the same time last year.
December 2008
% Change
December 2007
Active Listings
Pending Sales
Bank Owned Sales
Average Sales Price
Time Supply of Inventory (months)
A quick look at the least and most expensive homes sold in the Eureka area include a $95,000 2bed/1bath home “Estate” sale in West Eureka and a $330,000 4bed/2bath “Resale” home in the Cutten area.
So who were these buyers that are keeping our real estate market active? The top 3 categories of Home Buyers were:
·65% were 1st time homebuyers
·18% were investors
·6% were buyers relocating to the area
Again the 1st time homebuyers lead the home buying charge. 1st time homebuyers have found that lenders have great loan products administered thru the Federal Housing Administration and the Veterans Administration. Years ago these same loan products had fallen out of favor in light of the many new, flashy loans being offered. Loans with cool, sexy sounding names like SIVA, SISA and NINJA where all the rage. Today, VA and FHA are THE loan products making it possible for many buyers to purchase.
Dean Kessler
All statistics in the 1st section courtesy HMLS.