A while back I explained the different layers of homes available in the Humboldt County market, and how each is responding to the different economic conditions in the marketplace. (see http://humboldtproperties.blogspot.com/2010/02/starter-homes-fixerswhats-in-name.html) You might recall that I divided the segment into 5 key layers.
2009 Humboldt County Housing Market Segments
• Fixers – up to $225,000 24% of the market
• Starters - $225,000 - $275,000 31.3% of the market
• Mid-range - $275,000 - $400,000 29.7% of the market
• Executive - $400,000 - $500,000 8.2% of the market
• Luxury - $500,000 and up 6.8 % of the market
As I explored the details of our Humboldt County market for January and February 2010, I discovered the following details:
Jan-Feb, 2010 Humboldt County Housing Market Segments
• Fixers – up to $225,000 41% of the market
• Starters - $225,000 - $275,000 15.2% of the market
• Mid-range - $275,000 - $400,000 32.4% of the market
• Executive - $400,000 - $500,000 4.8% of the market
• Luxury - $500,000 and up 6.7 % of the market
The huge movement from the “Starter” segment of the market into the “Fixer” segment, as well as the significant drop in “Executive” homes sold, are the best explanations for the significant change in average and median home sale prices in the first 2 months of 2010. So, rather than seeing this new data as the beginnings of a new slide in real estate prices, I’m thinking it’s an anomaly in the market, one that will be corrected over the coming months. It sure does emphasize the opportunity for killer deals in the bottom segments of our market, though!
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