Unlike many areas of California, Humboldt County has not seen a significant drop in median home prices. What we have seen is a drop in sales. Just compare the Summer of 2008 (pre financial meltdown) to the Summer of 2009 and you'll see that the sales have picked up seasonally, but remain below the sales from last year.
However, take a look at the sales from August 2008 (114) and compare them to August 2009 (113) : nearly identical. All this with less inventory in 2009 (1588 to 1460).
Why is the market gaining steam? I believe that it is the pressure that first time buyers are feeling to close by November 30th, 2009. If they miss out on this date, they miss out on $8000 in tax credits.
This is a real motivator for many first time buyers and I believe that it has led to the pick up in sales activity. I feel that we will see that homes priced under 200,000 in Humboldt County are going to become more of a hot commodity. So if you are looking in that range here are a few homes to look at:
0-150K - http://link.flexmls.com/j6etcf8w2ls,3
150-250 - http://link.flexmls.com/j6etcggy119,3
Here's a bit higher range too...
250-350 - http://link.flexmls.com/j6etcgseuem,3
350-500 - http://link.flexmls.com/j6etch5hxg8,3
Where is the Humboldt County Market Headed?
If I could predict the future, I probably wouldn't be selling real estate, but if I had to guess, I'd say that the November 30th deadline to close a transaction will be extended, giving first time buyers a reprive. This won't be done until the 11th hour, why? Because buyers would procrastinate on the purchase of a house.
I believe that first time buyers should be looking to purchase now. This is because I feel that the market has hit bottom and although the prices won't shoot through the roof again, they will be headed up, and so will interest rates. The take home is this: don't kick yourself down the road, buy at the right time and you'll pat yourself on the back for years to come.
Andy Parker, Broker Associate
Azalea Realty
http://www.azalearealty.com/
