EUREKA AREA HOME SELLING TRENDS

 

 

Eureka Real Estate expert, DEAN KESSLER of THE KESSLER REAL ESTATE TEAM reports that in the past month home sales in the greater Eureka area dropped off from prior months.

 

Kessler notes “The slow down in home sales demonstrates a market where Buyers are looking for value. If the buyer does not perceive the seller’s home to be a good value, buyer says next. Buyers are choosing to either wait for a value change in an existing home for sale; or wait for a home for sale new to the market that they perceive to be an better value.”

 

Kessler went onto say “More than ever, home buyers aggressively comparison shop. They have to see the value in the home in big, bold, letters. Sellers no longer have the luxury of offering to replace carpet or ask a buyer to visualize what a home would look like if the buyer remodeled the kitchen or fixed the deck. A seller’s home has to be the prettiest home for sale at the best price. If not, the seller’s only recourse to be competitive in this market is to reduce their asking price.”

 

“With over 11 months of inventory, home sellers where in intense competition with each other. For every 11 homes for sale in the Eureka area, only 1 home sold. If a seller was serious about selling, their home had to be a better value than the 11 other homes for sale a prospective homebuyer looked at.”

 

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

 

 

May 2009

% Change

May

2008

Active Listings

260

-20%

325

Sales

23

-23%

30

Short Sales

0

0%

0

Bank Owned Sales

2

+100%

1

Average Sales Price

$275,926

-5%

$290,384

Time Supply of Inventory (months)

11.3

+4%

10.83

 

 

Kessler reflected on May’s real estate statistics by saying “The average sales price of a single family home in Eureka increased for the second month in a row. May’s average of $275,926 increased 4% from April’s average of $264,311.  At $275,000 home buyer typically purchased a newer 3 bed, 2 baths, 1500+ square foot home.”

 

A quick look at the least and most expensive homes sold in the Eureka area include a $165,000 2bed/1bath home “Resale” sale in the downtown Eureka and a $460,000 4bed/3.5bath “Resale” home in the Cutten area.

 

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

 

· 48% were 1st time homebuyers

· 26% were move-up buyers

· 9% were investors

 

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.