Last month local market activity saw a noted shift among the ratio of homes that are coming on the market
versus buyers that are walking into a new purchase.
As a result, market movement now finds the absorption rate pendulum swinging away from a seller’s
market and more in favor of buyers. In February the average ratio of unsold inventory moved from 5.31
months to 5.94, which means a balanced market has returned.
Part of the shift was caused by sellers who had waited in anticipation for 2010 to arrive. Some went as far
as to take their homes off the market in the last quarter of 2009, with a plan to relist in January.
Other sellers have been speculating for a year or longer, believing that January was the time to place their
homes on the market with the goal to have them sold by springtime. Still others, due to relocation, have the
necessity to sell their home at this time.
And of course, there are always the distressed sales, or foreclosures, that now make up about 13 percent
of the local active market.
With such an increased inventory from sellers, and the market now shifting more in favor of buyers —
what an incredible time to purchase! Here are a few further reasons why:
1) As just mentioned, the selection is great. There has been an increased demand for homes below
$200K, as this seems to be the price point that intrigues many buyers at the moment. A lower priced home
means a lower monthly payment. The good news is that there seems to be a continual flow of homes coming
on the market in that price range, in fact, in all price ranges.
2) Mortgage rates are still low. If the Federal Reserve stops buying mortgage-backed securities at the
end of March, 30-year rates will almost certainly rise to more than 6 percent.
3) Prices are rising. About 30 percent of markets nationally are already experiencing price increases.
Prices are falling in 12 percent of markets. Locally, some areas of town have definitely flattened out. When
prices rise, then it’s too late.
4) First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30!
Buyers are expected to return as warmer weather and longer days allow more time to shop for a home after
the typical nine-to-five work day.
Ridgecrest Facts as of March 2010
• To date there are 171 single-family homes on the market ranging in price from $23,000 to $599,900.
• The past three months’ price per square foot average of sold single family homes are College Heights
$127, NW $105, NE $104, SE $115, SW $81, RC Heights $108.
• The median home price increased 17.3 percent from last month to $185,000.
California Fast Facts
• The California median home price is $287,440.
• The lowest median home price is High Desert at $124,480; in Ridgecrest it’s $185,000
• The highest median home price is found in Santa Barbara So. Coast at $847,500 (Source: C.A.R.)
Clint Freeman is at www.RidgecrestCaHomes.com and at Coldwell Banker Best Realty, 710 N. China
Lake Blvd., Ridgecrest, CA 93555. Call 760-375-3855, fax 760-375-1411, call cell 760-382-1082 or e-mail
clint@bestrealty.net
versus buyers that are walking into a new purchase.
As a result, market movement now finds the absorption rate pendulum swinging away from a seller’s
market and more in favor of buyers. In February the average ratio of unsold inventory moved from 5.31
months to 5.94, which means a balanced market has returned.
Part of the shift was caused by sellers who had waited in anticipation for 2010 to arrive. Some went as far
as to take their homes off the market in the last quarter of 2009, with a plan to relist in January.
Other sellers have been speculating for a year or longer, believing that January was the time to place their
homes on the market with the goal to have them sold by springtime. Still others, due to relocation, have the
necessity to sell their home at this time.
And of course, there are always the distressed sales, or foreclosures, that now make up about 13 percent
of the local active market.
With such an increased inventory from sellers, and the market now shifting more in favor of buyers —
what an incredible time to purchase! Here are a few further reasons why:
1) As just mentioned, the selection is great. There has been an increased demand for homes below
$200K, as this seems to be the price point that intrigues many buyers at the moment. A lower priced home
means a lower monthly payment. The good news is that there seems to be a continual flow of homes coming
on the market in that price range, in fact, in all price ranges.
2) Mortgage rates are still low. If the Federal Reserve stops buying mortgage-backed securities at the
end of March, 30-year rates will almost certainly rise to more than 6 percent.
3) Prices are rising. About 30 percent of markets nationally are already experiencing price increases.
Prices are falling in 12 percent of markets. Locally, some areas of town have definitely flattened out. When
prices rise, then it’s too late.
4) First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30!
Buyers are expected to return as warmer weather and longer days allow more time to shop for a home after
the typical nine-to-five work day.
Ridgecrest Facts as of March 2010
• To date there are 171 single-family homes on the market ranging in price from $23,000 to $599,900.
• The past three months’ price per square foot average of sold single family homes are College Heights
$127, NW $105, NE $104, SE $115, SW $81, RC Heights $108.
• The median home price increased 17.3 percent from last month to $185,000.
California Fast Facts
• The California median home price is $287,440.
• The lowest median home price is High Desert at $124,480; in Ridgecrest it’s $185,000
• The highest median home price is found in Santa Barbara So. Coast at $847,500 (Source: C.A.R.)
Clint Freeman is at www.RidgecrestCaHomes.com and at Coldwell Banker Best Realty, 710 N. China
Lake Blvd., Ridgecrest, CA 93555. Call 760-375-3855, fax 760-375-1411, call cell 760-382-1082 or e-mail
clint@bestrealty.net
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