Shasta County’s housing market is shifting with rising inventory, changing absorption rates, and steady home prices. With mortgage rates still fluctuating and new economic signals from the Fed, here’s what’s shaping the market this month

Table of Contents

• Market Snapshot

• Redding Market Trends

• Mortgage Rates & Fed Update

• What This Means for You:

Market Snapshot

The Shasta County housing market is seeing an increase in active listings, up 45% year-over-year, while sold listings have dipped 6%. Median sold price is up 3% to $394K, signaling steady home values. Homes are selling faster in some areas but staying on the market longer in others, creating a mixed landscape for buyers and sellers.

Understanding these trends helps buyers and sellers navigate the market with realistic expectations. Rising inventory means more choices for buyers, while slower sales may require sellers to be more strategic. With prices holding steady, the market remains competitive, but shifting conditions could impact negotiations and timing.

Redding Market Trends

Understanding the real estate market can feel overwhelming, but two key indicators can tell us a lot about whether it’s a buyer’s or seller’s market: Absorption Rate and Months of Supply.

Absorption Rate (blue graph) tells us how quickly homes are selling compared to the number of homes available.

• A higher absorption rate means homes are selling fast, signaling a seller’s market.

• A lower absorption rate means homes are sitting longer, shifting toward a buyer’s market.

• Currently, absorption is at 24.3%, meaning nearly 1 in 4 homes listed is selling each month.

Months of Supply (dark blue line) shows how long it would take to sell all homes on the market if no new listings were added.

• Below 4 months = Seller’s Market (High demand, fewer homes available)

• 4-6 months = Balanced Market

• Above 6 months = Buyer’s Market (More homes, less demand)

• Right now, Months of Supply has risen 50% to 3.9 months, indicating a shift toward a more balanced market.

A six-month supply is considered neutral, so while we’re not in a full buyer’s market yet, rising inventory suggests buyers may have more negotiating power moving forward.

Mortgage Rates & Fed Update

The Fed has held rates steady, keeping mortgage rates around 6.76% for a 30-year fixed loan. While potential cuts may come later this year, rates remain elevated for now.

• Homebuyers: With stable rates, now is a good time to lock in financing if you find the right home. Higher rates mean affordability is key, so exploring loan options and negotiating on price can help.

• Home Sellers: Buyers are more rate-sensitive, making competitive pricing and market-ready homes essential. While demand is steady, rising inventory means standing out is crucial.

What This Means for You:

The Shasta County market is shifting, offering both opportunities and challenges for buyers and sellers. Rising inventory means more choices for buyers, while sellers need to stay competitive as market conditions balance out. Mortgage rates remain stable, making it a key time to evaluate your next move.

📞 Thinking of buying or selling? Let’s discuss your strategy in today’s evolving market. Reach out to start the conversation!

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