I don’t like to be negative. I don’t like to create anxiety or frustration. So it should come as no surprise that these days I have trouble bringing myself to write about real estate.
I absolutely love being a real estate agent. I love writing. Normally, I love writing about real estate. But the current state of affairs does not motivate me to run to my computer and tap out the latest. I want to write fun things – how to get more money for your home when listing it, how to get the most exposure for your listing, how to negotiate the best deal, stories of sellers that walked away with money in their pockets, etc.
But these things are not the realities of our market today.
Whether you call this a bump in the road, a recession or a depression – for most folks its pure frustration.
When this started it was about people who had made poor loan decisions – 100 percent financing on interest-only loans now adjusting. People who bought more than they could afford. Though it was sad to see, we could all say, “Well, you kind of got yourself in that position.”
But now it’s not just those people. What about the person who unexpectedly lost his job, and to find a new one has to move? The couple getting divorced and forced to sell? The person whose husband dies of cancer and she finds herself upside-down in their dream home with no income? The soon-to-retire couple who put 20 percent down on their retirement home but can’t afford to make the payments now that their portfolio has all but disappeared?
These are the stories of today.
But there is some good news! It is not all bad!
If you are a buyer, there is great news – prices are down and interest rates are getting even lower. Interest rates went from the 6.5% range down to the 5.5% range recently and there is a lot of talk of them going even lower. Unbelievable: You can get a house at a great price and a great rate that is set for the next 30 years. What a time to buy!
Home sales are up. There were more sales in the third quarter of this year than third quarter of 2007. Though prices have declined, the fact that the number of homes selling is increasing is good news. Supply and demand. The incredible amount of homes on the market has helped drive prices lower, but as more people buy houses and the inventory gets smaller, prices should stabilize and – oh, how we all hope for this – eventually start going up again.
And don’t forget, even though prices are down in the last two years, homes prices in Redding are still up over 30 percent in the last five years.
It is tough to see the personal side of this bad market. The stories mentioned above and the people whose lives are so greatly affected. But as history has proved, this too shall pass. Real estate has always been a good long-term investment. Let’s just hope, though, that it passes sooner rather than later so we can reflect on the tough times and be thankful that it is good again!
Lara Wells Osborn is a Redding native. After traveling and working around the world she has returned to Redding with her husband and three children. She is a real estate agent with Coldwell Banker Westside. She can be reached at 530-276-3026 or by email at laraosborn@ccproperties.com.
