Kingsburg Price Stabilization and the National Trend

Lawrence Yun, Chief Economist for the National Association of Realtors states that “Home sales clearly recovered in the latter part of 2010 and are helping to absorb the inventory, including many distressed properties. Even with foreclosures continuing to enter the inventory pipeline, they’ve been selling well and housing supplies and trended down. A recovery to normalcy requires steady trimming of the inventories”. This is exactly what has been happening in our own little corner of the world here in Kingsburg. The number of homes on the market available for sale here in have continued to trend down a little bit each month for the past 7 months. And it’s good to see the same thing happen on a national level.
The Kingsburg price per square foot dropped somewhat in January, down to $99 per square foot as compared to $118 in December. There were four foreclosure homes that sold way below the average, which brought the whole average down. Even though foreclosures are still making an impact on our market, several homes in the past 60 days have sold up in the mid $140 per square foot. This in of itself is encouraging.
The new home construction situation here has softened a bit in the past several months. The City of Kingsburg has only issued 2 permits to build single family homes in the past 6 months. Northhampton Estates currently has three homes under construction .These range in price from $284,950 up to $329,950 and the model home is also available for sale.
From Leonard (the loan guy):
Interest rates are slowly trending higher. Nothing dramatic as of yet, but higher rates seem a given in this environment. Hard to complain about 4.875% when the historical averages are over 7%.
New government regulations are bearing down on the lending sources and we seem to be in a time of tremendous change to costs and time frames for borrowers and, therefore, the real estate transaction. Rules that some deemed “lax” have been strengthened to what some deem “prohibitive” and a struggle for financing from traditional sources is in our future. No one seeks chaos but that may be where the lending world is headed about April 1, 2011
We all look forward to assisting you for your real estate sales, property management and loan needs.

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