In Humboldt County, the market often starts to taper off and slow down in fall, much like everything else. Winter tends to be our slowest time for sales, but I’ll write more about that in a few months!
Considering what 2020 has thrown at us, globally, and locally, the market has been remarkably stable, if not robust.
We are firmly in a Seller’s market, meaning it’s the perfect time to sell. There are a variety of reasons why – with the first being that we have a low inventory right now. This time last year there were about 550 listings, and today we are just over 300. That’s actually a very dramatic difference if you’re house hunting. Your choices and options are truly limited, in almost every price category, but especially for the average, 3 bedroom, 2 bath single family homes that most buyers are looking for.
Another reason is that people are continuing to move into the area. This is undoubtedly fueled by the insane fire season we’ve had in California this year. I’ve heard multiple stories of properties sold this summer that went to people who had lost their homes to fires and decided to relocate. We all know Humboldt is amazing for a million reasons, but add to that the unlikelihood of a large coastal fire and that makes it even more attractive to someone who has just lost everything.
This influx is also seeing a steady trickle of people who have had their jobs move online for the foreseeable future, thanks to Covid-19 – opening up the possibility of relocation. People are taking their online jobs, and moving to where they want to be. Both of these scenarios are bringing money into the area.
Compared to last year at this time, we have had less residential sales, more land sales, and almost twice as many Multi-family property sales, which may indicate that people are selling off investment properties, or that investors are taking advantage of the seller’s market.
Also, compared to this time last year, sale prices have gone up, with the average residential property selling at around $380,000, while last year it was $349,000. Average land prices have gone down slightly from $233k to $184k. Meanwhile, multi-family property prices have jumped from an average of $390,000 in 2019 to $465,000 in 2020!
All of this indicates that prices are continuing to rise in Humboldt.
The changes made in the practices of Real Estate for Covid-19 have become commonplace now. To see properties, it is best to be prequalified with a lender, as many sellers are requesting proof of this prior to allowing showings. As a buyer, you can expect to wear masks and gloves at showings and will need to sign a form for each showing indicating awareness of Covid-19 and stating that you are not sick. In my personal opinion, I emphatically approve of the change requiring pre-qualification letters from lenders. It does make more work for our busy and overworked financial counterparts, but it makes a lot of sense in real estate to make sure buyers can afford the properties they are looking at. If you are a buyer and you’re not sure where to start – check out our free online guide, call a lender, and consider attending our workshop on October 17th.
Also, if your considering using the rising prices of Humboldt County Real Estate as part of a personal investment strategy, consider attending our Investor’s Workshop, on October 18th, where we’ll have a ton of information about how to get involved in Real Estate Investments. You can read more about that workshop here.
If you’re interested in a broader, state-wide perspective, consider checking out this link to the California Association of Realtors report on how Coronavirus has impacted the market in our state.
Bear in mind that our local Humboldt County Market doesn’t always fall in line with what is happening in the rest of California.
If you’ve been considering making a move in Real Estate, wether it’s buying, selling, or investing, the market here is stable and steady. We’d love to talk over your ideas and plans and are always available for questions! Have a wonderful fall Humboldt County!