Real estate is rebounding and property sellers are faring better in Yuba-Sutter as interest rates climb in a fluctuating market, experts said. The increase is unsustainable because prices are going up faster than the average person’s income. That, combined with a rise in interest rates, will have an affect on affordability. Additionally, more new-home construction is bringing additional residences on the market. This will also slow down the rate of appreciation because Yuba-Sutter will have more of a supply.
Homes are already receiving multiple offers and buyers are having a hard time finding anything in Yuba City. According to real estate research firm Dataquick, last month’s prices for new homes and resales rose 35.3 percent in Sutter County and 31.8 percent in Yuba County from May 2012. An inventory shortage prompted speculation that home construction will increase, but Interwest Homes — the only apparent new home builder in Yuba-Sutter — is so busy it’s having to turn people away temporarily, an official said.
Better than it used to be
The future of real estate may be uncertain, but things are definitely better than they used to be, experts said. The housing market crash, including the nationwide recession that followed, was difficult for several Yuba-Sutter real estate agents, contractors and new-home builders. It wasn’t until about February 2009 that residents in the real estate business started seeing stability in the market. By then, however, much of the competition had been weeded out.
Jerry Munz, owner of JM Construction, said he had to get “lean and mean” on his financing to pull his company through the recession.
“You always had that gut feeling that you weren’t going to make it,” he said, “but you found a way.” People wanted to work on projects, Munz said, but couldn’t get loans from the banks. “I’ve been through a couple bad ones,” he said, referring to rough economic periods, “but I’ve never seen one quite like this.”
But things have turned around since then, Munz said. As the real estate market looks up, JM Construction has seen an increase in clients.
Plumas Lake most improved in Y-S
When it comes to real estate sales, Plumas Lake has become more popular than most. Real estate agents said no area has improved more than Plumas Lake since the recession, but there really isn’t a “hot spot” for home sales in Yuba-Sutter.
As for which types of homes most people are looking for in the area, homes ranging from 1900 square feet to 3300 square feet. The lower models are all four bedroom, with 21⁄2 to three bathrooms and a three-car garage.
Lately, customers are asking for solid slab granite, tile floors and custom-made cabinetry. However, tankless water heaters are the most popular trend. Each house comes in three styles — Spanish, French country and Italian — with a number of different looks.
The most expensive is $454,000 and the least expensive is $280,059.