EUREKA AREA HOME SELLING TRENDS

 

 

Eureka Real Estate expert, DEAN KESSLER of THE KESSLER REAL ESTATE TEAM reports that home sales in the greater Eureka area gained positive momentum last month.

 

Kessler notes “As we went into June from a lackluster May, not many homes had sold yet we saw a dramatic increase in the number of buyers out looking. The results are in for June and we see now there was a 34% increase in the number of sales from May. With the increase in buying activity we have also witnessed home prices stabilize from their downward trend over the past couple of years.”

 

Kessler went onto say “First Time Home Buyers have some awesome opportunities to purchase right now. A large amount of home inventory at tremendous values coupled with loans at historically low interest rates make this a great opportunity for many buyers and sellers. And without a lot of press fanfare a huge plus developed last month where a first time homebuyer can now borrow a down payment against their future $8,000 tax rebate. This change allows a homebuyer to obtain a No Down Payment loan.”

 

“In addition, The California Association of Realtors came out with a program where by they guarantee to make a First time Homebuyer’s monthly payment in the event of a borrower’s loss of income. With all these incentives/guarantees it’s no surprise that the majority of home buying activity is being led by the first time homebuyers.”

 

The chart below shows real estate activity for the Eureka area as compared to the same time last year.

 

 

June 2009

% Change

June

2008

Active Listings

260

-20%

325

Sales

31

-24%

42

Short Sales

2

0%

2

Bank Owned Sales

4

+100%

2

Average Sales Price

$253,125

-13%

$292,396

Time Supply of Inventory (months)

8.4

+8%

7.8

 

 

Kessler reflected on June’s real estate statistics by saying “The average sales price of a single family home in Eureka decreased slightly over the past month. This indicator does not necessarily mean that home prices have dropped. My opinion is that the First time Home Buyers are buying more entry level homes, which drive the “average” prices down.  June’s sales price average of $253,125 meant a home buyer purchased a newer 3 bed, 2 baths, 1400+ square foot home.”

 

A quick look at the least and most expensive homes sold in the Eureka area include a $95,000 1bed/1bath home “Resale” sale in Fields Landing and a $461,000 3bed/2bath “New Construction” home in the Cutten area.

 

So who were these buyers that are keeping our real estate market active? The top 3 groups of Home Buyers last month included:

 

· 45% were 1st time homebuyers

· 19% were relocating to the area

· 16% were move-up buyers

 

Dean Kessler is the Broker/Owner of RMK Realty, Inc and Seller Specialist for The Kessler Real Estate Team. He holds the Realtor®, Accredited Buyers Representative (ABR), Certified Distressed Property Expert (CDPE), and Certified Residential Specialist (CRS) designations.

 

All statistics courtesy Humboldt Multiple Listing Service.