Thursday, December 13, 2007

Humboldt Real Estate - 2007 in review

Hello and welcome to my blog about the Humboldt County Real Estate market. You probably wouldn't be reading this unless you are interested in real estate, so welcome and I hope that I can be entertaining as well as informative. This year in Real Estate was a very unstable indeed. 3 Topics dominated our local market:

1. Subprime Melt down - This got everyone in a panic and rightfully so. Buyers who were prepared to jump in the market were suddenly unable to get the loan they were looking for and others, took the news as reason to stay out of the market. The result: VERY FEW BUYERS! When there is no demand, prices fall, and they continue to fall. But my collegues and I have a remarkable trend: When a property is priced correctly, it sells very quickly. This year, I had 6 Transactions that were on the market for 15 days or less. But with fewer buyers the market did slow and the next issue didn't help...

2. HSU Professor, Erick Eschker, (his site can be found here) released a report that stated he
felt that Housing Prices could fall up to 40%. This was based on the historic "Price to rent" ratio. Because prices had climbed so much but rents hadn't, he argued that prices would have to fall back in line with historic rents, thus losing up to 40%. This caused a tremendous outcry in Humboldt County and indeed the Real Estate Community. Many tried to refute the claims (including me) but the damage was done. Our local market saw a 33% drop from the previous month. I know I had a few people back off, hopefully, I'll hear from these people again. Of course, I'm biased, (aren't we all?) but I felt that this was irresponsible journalism. The Eureka Reporter published the article that quoted the HSU professor and quoted no local Realtors. The article did quote the new California Association of Realtors President, but I equate that to asking Arnold Schwarzenegger how things in Humboldt County are. In the end, sluggish sales have many realtors worried. It might be because you actually have to market homes. The bottom line is this: The Market may take a hit for the next year, but in the end, prices will stabilize and we should see a more typical appreciation. Savvy investors always invest when prices go down because they can make the hay at the end of the day when prices turn around.

3. The third topic that dominated the Humboldt county Real Estate Market was a zoning designation called TPZ, or Timber Production Zone. Recently a lumber company called PALCO filed for bankruptcy protection. They gained no friends by petitioning the Bankruptcy Court to move their hearing to Texas (They claimed that the corporate headquaters was located there). But part of their plan to pay off creditors revolved around subdiving some TPZ lands they had and making them into High End Homes. When the Humboldt County Board of Supervisors got wind of this, they put a moratorium on building permits on all TPZ lands. This was an infringement on property owners rights and provoked public outcry. The Supervisors have since backed off but this issue is still lingering as it has not been put completely to bed.

Well, that's the Real Estate News in 2007. That's all for now, but I'd just like to close with this Video. I produce videos for my listings because I think they are perfect for Web 2.0. The most important thing is getting your Home to the more than 70% of buyers that start their search online.

I'm putting in this one:
Located in a terrific McKinleyville neighborhood, this 4 Bedroom, 2 ½ Bath home built by Ron Lunblade boasts a Marble Fireplace, LaminateFlooring, Custom Paint Inside, A Fresh Coat of Paint outside and a Park-like Oversized Lot. This home would be great for buyers who enjoy entertaining with a Formal Dining Room and a kitchen that opens to a family room. Don't miss this terrific opportunity