Momentum

Copy for Real Estate Guide Column for 2-17-06   (445 words)

REAL ESTATE PATTERNS
By Ken DuVall

MOMENTUM

I talked about ship condos last week. This week it’s about the direction of the current housing market as compared to large ocean liners making course corrections. It takes several miles for them to either stop or change direction once underway. Momentum. The housing market is no different. It takes time for the driving factors to materialize in the level of sales. What we’re seeing is a slowing effect due to loan rates, and available inventory, both up. But pending sales are rising as I write. We anticipate more Fed funds rate increases over the next few months. But there’s never going to be enough houses to go around, period. Supply and demand alone determines value.
LIFESTYLES OF THE RICH AND FAMOUS
In the $1 million-plus price range, California sales have surged to a new peak for the 4th year in a row, totaling 48,666 homes sold last year, a 47% increase over 2004. There were 310 sales in the over $5 mil category, 327 in the $4 to $5 mil range, 990 in the $3 mil range, and 3937 around $2 mil. The most expensive sale was a 13,636 SF, 6 BR 12 BA La Jolla house on 6 acres that went for $23.5 mil. Topping the for sale list is “The Donald’s” $125 mil Palm Beach, FL 6 acre 15 BR  humble abode, the most expensive home ever offered. You can also get a “shack” in Belvedere, Bel Air, Beverly Hills or Malibu for around $65 mil.
THE LITTLE PIG’S HOUSE!
Straw bale construction is gaining popularity due to rising energy and building material costs around the country. As many as 600 are being built in California alone. Straw bales are recyclable, organic and eco-friendly. They also have insulation ratings 3 times higher than conventional walls, and are fire resistant. After stucco and drywall, you can’t tell the difference. Though the straw costs maybe 15% more, homeowners benefit from lower heating and construction costs too as they go up faster. We’ve already done a couple here in Chico.
WHAT’S MY BEST OFFER?
That’s what clients ask me when they’re selling. When any product first hits the market, that’s when it gets the most attention from the largest number of people in the shortest period of time. A buyer is likely to make your best possible offer right then. As always, timing is everything in every way to everyone at all times. Bottom line: your first offer is 99% of the time your best offer. Those initial offerors have done their homework and are ready to rock and roll, as opposed to the tire kickers that may not be quite ready for prime time.


Ken owns Ken DuVall & Associates, Realtors at 3rd Ave. & Mangrove in Chico.  Ken was the 2001 President of the Chico Assn. of Realtors and the 1995 Chico Realtor of the Year.  See Chico MLS listings at www.KenDuVall.com and call Ken at 345-3700 for all your real estate needs. Free consulting.