Last decade getting a bad rap?
First Time Buyers
January 3rd, 2010
If you caught any of the year in review shows on TV or radio or read the paper you couldn’t help but notice the overwhelming focus on a decade lost to a financial meltdown. Could it be the 00’s are getting a bad rap? I came across an article in the Union Tribune that took a decade view of the San Diego real estate market and decided to apply it to Redding.
If you purchased a home in Redding in 2000 you would have paid on average about $150,000. By the end of 2009 the average sales price of a home in Shasta County was $215,000, a 43.3% increase over the decade. Because so much of our market is price range specific I took a look at a few area neighborhoods to see how they fared over the last 10 years.
Ravenwood had a whopping 73.8% increase from $123,076 in 2000 to $213,993 at the end of 2009.
Starview Estates homes were selling for $82,760 in 2000 and $135,720 by the end of the decade. A 63.9% increase.
Western Ranches had a 40.9% increase from $178,867 to $252,182 over this time.
Sunset Terrace was the worst performer I found at 12.4% ($250,227 to $281,413)
How long will it take for home prices to regain 2006 levels is impossible to predict but 2018 is the estimate quoted in the union-tribune article. If that were to occur here the average home purchased in 2010 for $215,000 would be worth $323,835 in 2018 (50.6% gain).
My take away from this? Real Estate remains a very solid long term investment. I believe that Real Estate is unique in that those with patience and discipline are able to leverage a relatively small initial investment combined with a monthly housing expense (mortgage instead of rent) and realize significant gains over time. It is my opinion that we are in a market most likely to produce very good returns for buyers.
Interested in taking advantage of this opportunity? Contact me at 530.515.9097 or reddinghomes@gmail.com to get started.
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