Episode Transcript
[00:00:00] Speaker A: An online presentation on the local housing market shows Humboldt's home sales hit a low Point in 2023 but are climbing back up again in what's described as a very normal, healthy, balanced market.
Realtor Annaliese von Borstel, who chairs the Humboldt association of Realtors Government Relations Committee, gave a detailed presentation on the county's housing market at the February 18 Community Economic Resilience Consortium meeting.
Using data from national, state and county sources, von Borstel described a local market that dropped from a 2021 peak into a valley two years later from which it's now emerging. She said it reflects statewide trends.
[00:00:46] Speaker B: The number of sales in California fell nearly 23% in 2022 and fell another 25% in 2023.
In 20 in 2024, sales were up slightly above 4% and climbed another 7% in 2025.
And as you can see, we experienced that dip in the total number of sales in Humboldt county since 2021.
In 2023 we had 1004 sales, but that trend's already beginning to reverse.
A few factors that have resulted in the lower number of sales over the past few years low inventory, higher interest rates, inflation and of course, consumer sentiment. So lower inventory is due in part to higher interest rates and this mortgage lock in effect.
So like, who do you know that has a mortgage rate that's 3% right now and are they willing to just leave that 3% behind to buy a different property?
[00:01:41] Speaker A: Von Borstel said local home prices have outpaced the state's inflation, which rose about 28% in the last six years, while Humboldt's housing prices have increased 31% during that time.
She added that recent housing market changes aren't very drastic, especially when compared to crashes like the one seen in 2008 when only 876 homes were sold in Humboldt.
On housing affordability, 30% of Humboldt's households could afford to buy a home as of the last quarter of 2025, with a median home price of $413,000.
That's an improvement from the last quarter of 2024 at 22%.
Von Borstel said Humboldt, quote, sits approximately in the middle of the state when it comes to housing affordability.
Von Borstel also discussed effects of the cannabis economy downturn in southern Humboldt.
[00:02:41] Speaker B: Back in 2017, we were seeing southern Humboldt at a peak and residential properties were for more than anywhere else in Humboldt. But very quickly we see that inverted.
In 2020 it fell below all other markets with a bit of a climb in 2021, but taking a more obvious dive now in 2025. But Southern Humboldt actually had more number of sales last year. It's gone up 63% from 2023. There's a lot of foreclosures in southern Humboldt right now. Land values are being affected by that as well as the flood of properties that are coming onto the market. It's driving up competition for sellers.
Unfortunately, it's a little bit of a race to the bottom right now down there. Folks buying up these properties seem to be cash buyers without any clear intentions for the properties. Just kind of a desire to own and hold real estate for now overall.
[00:03:37] Speaker A: Von Borstel said the pendulum has been swinging in recent years, but quote, a pretty healthy, balanced market is seen with current supply demand levels.
With prices flattening and interest rates dropping, Von Borstel said a buyer's market is emerging in 2026.
[00:03:56] Speaker B: It does look to me like we're having a pretty strong start to the year.
Humboldt had 79 closings in January.
Compare that with last January. We had just 53. So that's an increase of 50%.
Median days on the market is down to 27.
In December, the median days on the market was 35, and last January it was 45.
So that increase in the number of sales and the decrease in time on the market has led to an absorption rate that is the lowest it's been since March of 2023.
Despite the increase in demand, median sole prices are down about 6% compared with last January and down 11.5% from December's median sold price.
So the lower prices and a sold to list ratio of about 92% feels really positive for buyers right now.
So it could be a really good time to jump on an opportunity that arises.
[00:04:57] Speaker A: Humboldt's population level isn't driving demand.
Van Borstel said. The County's population has dropped 3% from the 2020 census, and Eureka's population is down by 4%.
For KMUD news, this is Daniel Mintz.
