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.

Real Living Merges with GMAC Real Estate

Source: LA Times