by: Harold R. Hawkins, CRB, CRS, GRI, Broker/Owner, Vision West Realty

JANUARY, 2012

REAL ESTATE MARKET CONDITIONS

Our local real estate market, unlike other areas of our state and nation, continues to be quite vibrant. This positive climate is due in large part to strong local economic factors, limited availability of rentals, and our unsurpassed quality of life. Our area has not suffered the steep declines in real estate values seen elsewhere and corresponding "upside down" mortgages where owners owe far more on their loans than their property would likely bring at sale.

Homes in our area priced at $225,000 and below continue to sell at a premium while those in the $300,000 plus range are tending to sell at a discount.  I encourage owners of properties $225,000 and below to seriously consider taking advantage of this local market discrepancy by upgrading to a newer/larger home.  Add to this the fact that interest rates are at or near historic lows and the advantage of "trading up" becomes even more attractive.  Don't let this opportunity pass you by!

FINANCING

The average rate for the 30-year fixed rate loan fell to 3.01 percent in late December, the lowest in data dating back to 1971, Freddie Mac said in a statement.  The average 15-year rate matched its previous all-time low of 3.21 percent.

JOB MARKET CONDITIONS

The overall job market in Humboldt County has not suffered to anywhere near the extent seen in many other areas of the state and nation. Humboldt County's unemployment rate declined to 7.1 percent in November 2011 from 9.2 percent one year ago.  This compares favorably to a statewide unemployment rate of 13 percent in November,  down from 14.9 percent in November 2010. 

Our largest employment sector and the main economic driver for Humboldt County is the mining industry--especially gold and silver mining.  The price of gold has skyrocketed of recent, with gold trading in the mid-1500s.  This price is prompting an increase in mining and exploration activities and increasing the possibility of a new large-scale mining operation in our area.