Sunday, October 25, 2009
Existing Home Sales Surge in September
Data released by the National Association of Realtors on October 23rd indicated that sales of existing homes were up 9.4% nationwide, the highest in two years. The Western region fared even better, leading with a 13% surge. The rise in sales activity is attributed to buyers rushing to take advantage of the First Time Homebuyer Tax Credit before it expires next month. You can read more about the sales trend and efforts to extend the tax credit at Bloomberg.
Wednesday, October 14, 2009
Slight uptick in activity on larger vacant land parcels in the Foothills area
The following market commentary is for the Sierra North Valley MLS listing areas of Bangor, Yankee Hill/Concow, Upper Foothills, Forbestown, Feather Falls, Berry Creek and Brush Creek.
In the first 9 months of year, there were only 4 sales of vacant land properties over 15 acres in size. These were all around 20 acres with an average price of $2,879 an acre. Currently there are 4 additional sales pending, ranging from 17.5 to 165.5 acres. The average listing price per acre on these pending transactions is $3,576, although we won’t know the actual price paid until they close.
There is still quite of bit of inventory in this bracket with 26 active listings ranging from 20 to 305 acres and list prices from $50,000 to $2,275,000, with price per acre ranging from $984/acre to $11,814/acre.
Based on the pending sales data, I’d expect to see market appetite in the coming months for those larger parcels priced under $3,500/acre.
In the first 9 months of year, there were only 4 sales of vacant land properties over 15 acres in size. These were all around 20 acres with an average price of $2,879 an acre. Currently there are 4 additional sales pending, ranging from 17.5 to 165.5 acres. The average listing price per acre on these pending transactions is $3,576, although we won’t know the actual price paid until they close.
There is still quite of bit of inventory in this bracket with 26 active listings ranging from 20 to 305 acres and list prices from $50,000 to $2,275,000, with price per acre ranging from $984/acre to $11,814/acre.
Based on the pending sales data, I’d expect to see market appetite in the coming months for those larger parcels priced under $3,500/acre.
Hopeful signs for the housing market
In the October 14th edition of the Oroville Mercury Register, they reported on a lecture by David Gallo, resident economist for the Center for Economic Development at Chico State University. He was quoted as saying he believes the housing price decline has pretty much "hit bottom."
"As potential buyers and investors think they've seen prices go as low as they can, they'll start jumping back in the market", he said. "They'll also start buying new or existing homes that have sat on the market for months. Once existing homes start disappearing, local builders will start constructing new ones. That demand for homes will help push housing prices up".
"And lenders are willing," Gallo noted.
"As potential buyers and investors think they've seen prices go as low as they can, they'll start jumping back in the market", he said. "They'll also start buying new or existing homes that have sat on the market for months. Once existing homes start disappearing, local builders will start constructing new ones. That demand for homes will help push housing prices up".
"And lenders are willing," Gallo noted.
Subscribe to:
Posts (Atom)
