Real Estate in Redlands, California

July 12, 2007



Because so many of my friends and acquaintances ask me "How much have real estate prices dropped?", I decided to take a look at the closed sales reported for Redlands in the IMRMLS. Of the 300 closed transactions reported from January 1, 2007 to June 30, 2007, 27% closed at the listed price, 12% closed above the listed price and 63% closed below the listed price. (Just one caveat, the data is based on the listed price at the time of sale. The list price could have been reduced during the course of the listing period.)


I then reviewed the properties reported as selling under the list price to learn how much below the list price, sellers were willing to accept. Much media attention has been given to the decline in prices and suggesting that buyers should offer 10% less than the asking price. In the first half of 2007, such an offer would not have bought you a home in Redlands. Only 5 properties sold at 10% under the listed price. The majority of the properties sold between 1% and 3% less than the listed price - a fairly normal spread between listing and selling price in any real estate market. Actually in Redlands, 70% of the properties sold under the list price from January to June 2007 closed at 5% or less below the listed price.


Does this data tell you whether to buy or wait, probably not. I continue to believe that when you have lifestyle needs and a desire for a home, any time can be the right time. Using a knowledgeable agent who is familiar with the market will assure that you will have the necessary information to make an informed buying decision.