Redding CA - Redding Real Estate Market Report - Buyer or Seller's Market - October 2011!

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Real Estate Agent with Real Living, Real Estate Professionals BRE#01299346

Redding CA - Redding Real Estate Market Report for October 2011, we are seeing some changes in the real estate market here in Redding, CA. In the last two months our inventory has been dropping. We are seeing a significant change in inventory. Redding Active Listings in 2010 for the Month of October was 765 and for October 2011 it is 427. This looks like a game changer. We are seeing a busy market on the lower end with multiple offers on well priced properties. This may be the beginning of a changing market trend from a Buyer's Market to a Seller's Market.

Here is a look at the Month of October.

Redding CA - Real Estate Market Report - October 2011!

Our numbers are show the biggest change in iventory over 2010 with 100 Sold, 765 Active and 99 Pending. Our prices continue to drop with a Per Square Foot Price in Q3 or 2009 at $134.62 to a Per Square Foot Price in the month of October, 2011 being $104.32.

Redding Real Estate Market Report - Jeanean Gendron

With the Average sales price in Q3 or 2009 being $234,175 as compared to the month of October, 2011 we see a new Average sales price of $176,256. A loss in value of approximately 23%. We also see a variance of about 12% in List Price versus Sales Price, a trend common in a Buyer's Market.

Real Estate still remains an extremely viable and attractive investment market for long term investment. With the many tax advantages and means to defer taxes through 1031 Exchange, you continue to have a viable means to build generational wealth. Call today and we can talk about your goals and how you can establish generational wealth for the future.

I am Jeanean Gendron, and I have taken training and achieved designations to help you reach your goals. I hold CIAS (Certified Investor Agent Specialist) designation. It is my pleasure to be helping my clients achieve their real estate goals

.CIAS Designation

CIAS Designation Tagline

 

An example of a typical goal and how it is achieved follows.

A newly married couple has started their family and have a new baby. They have a financial goal to invest for their baby's college fund. They purchase a Single Family Residential property that will be an attractive rental. It is a 3 bedroom, 2 bath home with a 2 car garage.

Investment Property Purchased at $95,000

$23,750 = $25% Down + $2,881 in Closing Cost and $5000 in Repairs

PI = $382, I = $27, T = $98, PITI = $509

Gross Operating Income (GOI) = $1045.00 with a vacancy rate of .05%

Net Operating Income (NOI) = $720

Cap Rate (Capitialzation Rate) = 9.09% or .0909

Debt Service Ratio (DSR) = 1.41 (should be greater than 1.2)

Cash Flow = Monthly $536, Yearly $6,432.00

Cash-on-Cash Return (CCR) = 20.3%

With a positive cash flow and not considering appreciation, the return on their investment over 18 years will net them $115,776.00. They have achieved their goal.

In addition, they have now begun to establish generational wealth and have a "cash flow" producing asset. Through the means of 1031 Exchange they now have a vehicle to continue to acquire properties and defer taxes. One additional benefit is that IRA savings can be moved into Self-Directed IRAs and used to purchase real estate.

Call today and learn more about investing in real estate.

I am Jeanean Gendron, your Redding and Shasta County Specialist.

You can reach me at 530 276-7417. I answer my phone.

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California Shasta County Redding
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Investment Property (USA)
Tags:
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redding real estate market report
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Rainmaker
113,423
Scott Lewis
The Bald Man Group - Post Falls, ID
REALTOR, e-Pro,CIA,IMSD,GRI & CNE

Jeanean,

I like your analysis of the market for an investor. How do you calculate your cash on cash number?

I also like to know what is going on in other markets. Thanks for sharing.

Scott

Nov 05, 2011 11:13 AM #1
Rainmaker
1,140,654
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

Jeanean -- nicely presented market report....clear and concise.   Hope you have a great Fall selling season.

Nov 05, 2011 01:13 PM #2
Rainmaker
2,171,935
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Good market report. Home buyers are lucky to find such attractive prices to go with the very low mortgage interest rates.

Brookside Gardens, Dahlia Show, National Capital Dahlia Society, September 25, 2010, Wheaton Regional Park, Wheaton, Maryland. Montgomery County.

Roy and Dolores Kelley Photographs

Nov 05, 2011 03:44 PM #3
Rainmaker
735,511
Kwee Huset
Kwee Huset Realty - Venice, FL
Venice Florida Homes For Sale

Jeanean, good to see the inventory going down and hope that the trend will continue through end of the year. Continued success!

Nov 05, 2011 04:15 PM #4
Rainmaker
623,275
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Jeanean, It sounds like our market is similar to yours. Inventory is decreasing. We are seeing multiple offers on the lower attractively priced properties. Prices per square foot have been lower than before.  It's good to see that buyer's have taken an interest, and have gotten back into the market.  You're right, we may be seeing a trend here. 

Great, comprehensive market report that fits the season nicely.  You never miss a detail!

Nov 05, 2011 05:43 PM #5
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Jeanean and David Gendron
Real Living, Real Estate Professionals - Redding, CA
Specializing in Selling Unique Properties

Scott, I'm away from my home office. I have the formula at home....will come back to leave it for you. Thanks for stopping by and taking a look. I appreciate and also enjoy looking at market report across the country to compare. Have a great weekend.

Nov 05, 2011 07:25 PM #6
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Jeanean and David Gendron
Real Living, Real Estate Professionals - Redding, CA
Specializing in Selling Unique Properties

Scott, the formula to get CCR is Cash Flow divided by Total Cash Investment = CCR. Hope this helps. I took the CIAS course and it provides you with all the resources you need to help investors. I knew it all but putting those resources together takes so much time....they hand it to you in one nice package. I cannot say enough about the course or Alex Charfin. Top notch!

Nov 06, 2011 07:57 AM #7
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Jeanean and David Gendron
Real Living, Real Estate Professionals - Redding, CA
Specializing in Selling Unique Properties

Hello Michael, thanks for the visit. I get board with market reports....the data is good but....I love visuals. Deb Janes inspired me to try some new creative means to share my market data. I enjoyed the effort and now maybe I can get myself back into market reports. Have a wonderful day. Still shopping for my outdoor rug for my Courtyard. It will be the main focal point. Excited. Have a beautiful day!

Nov 06, 2011 08:00 AM #8
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Jeanean and David Gendron
Real Living, Real Estate Professionals - Redding, CA
Specializing in Selling Unique Properties

Hello Roy, yes Buyer are fortunate in this market with good prices and very good interest rates. I am fortunate that you come to see me and leave me with a beautiful flower. Have a wonderful Sunday!

Nov 06, 2011 08:01 AM #9
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Jeanean and David Gendron
Real Living, Real Estate Professionals - Redding, CA
Specializing in Selling Unique Properties

Hello Kwee,

Thanks for coming for a visit. It is never a perfect balance in real estate...always a problem on one side. With less investory, Agents are scrambling to find good houses for their clients. It's nice for listing agents like me, I do work with buyers but only when they are referred to me. It has been a long hard road for listing properties unless they were distressed properties and even then you had to make sure and get the price right. I've sold all my listings except on the higher end. I like it! Have a beautiful day!

Nov 06, 2011 08:06 AM #10
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Jeanean and David Gendron
Real Living, Real Estate Professionals - Redding, CA
Specializing in Selling Unique Properties

Hello Sandy, it's nice to have your finger on the pulse of the market. It's hard work but necessary. Doing short sales and REOs provide me a great opportunity to understand the dynamics of the market. Thanks for the visit and I'll come soon for my "Sunset" fix. Have a beautiful Sunday!

Nov 06, 2011 08:07 AM #11
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