Interesting Times – 2009 

I once heard there is an old Chinese curse that says “May You Live in Interesting Times”.  Boy, have we experienced interesting times!!!  

2009 may go down as the “Year of the Deal”.  According to our Tehama County Multiple Listing Service, for Tehama County, sales totaled 415 homes.  That’s not bad!  However, the mean sales price was just $158,777 (the median sales price was $147,000).  The average home sales price in 2006 was $271,000!!! .  The only Buyers out there now seem to be bargain hunters and first-time home buyers.    

The entire appraisal process was broken in 2009 and continues to be broken.  The current system of required Appraisal Management Companies is hurting home sales, home values and the economy.  Look for this system to be revised or revamped in 2010, but for now it’s a big headache for home buyers, home owners, real estate agents and real estate lenders.  The current system is costing everyone time and money.   

But for now, it may be one of the best times in history for first-time home buyers.  Interest rates are historically and unbelievably low, the market prices are low from supply and demand forces, prices are additionally low from artificial appraisal pressures and government lending programs are in full swing.  

In addition, most of us believe that interest rates have nowhere to go but up.  That makes it a great time to borrow now at low rates and pay back those cheap loans when inflation steps in.  And, we all know that’s coming. 

 Below is our latest graphical representation of the market.  Please note that this information is primarily derived from the Tehama County Multiple Listing Service and may not reflect the activities of the entire market:  

 

Residential Listings Sold Tehama County

 

Active Residential Listings Tehama County

Average Residential Sale Price Tehama