April 2024 Market Update Report

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From the Desk Of Josh Barker

MARKET UPDATE FOR April 2024

Homes sold in March finished at 185 down 8.9% compared to last year when home sales ended at 203 for the same month. A large contributing factor to the overall low number of properties sold is the surprisingly low home inventory. With low inventory to choose from, many buyers have been reluctant to jump into the housing market.

Homes Pended
Homes pending in January finished at 214, up 4.4% compared to last year when homes pending finished at 205 for the same month. In the City of Redding, there are a total of 123 single-family homes in escrow, up slightly from the 91 pending in the city of Redding in January.

Homes Listed for Sale
The total homes active for sale in March finished at 538 down 7.6% compared to last year when home inventory finished the month at 582. In the city of Redding active home inventory is down to an eye-catching 172 single-family properties for sale as of April 1, 2024. Low inventory can protect home prices but makes it challenging for buyers to find homes.

Average Sales Prices
The average sales price for a home in March finished at $385,000, down 2.63% compared to last year when the average sales price ended at $396,000 for the same month.

Interest Rates
After peaking at 8% for a 30-year mortgage last year, mortgage interest rates have slightly eased, currently hovering around an average of 7.125%. Many experts expect rates to remain higher in the short term, with long-term projections suggesting rates in the mid-to-low 6 % range at some point this year. The Federal Reserve has stated in recent weeks that they intend to lower the fed rates multiple times in 2024 likely starting in June. A reduction in the Federal Reserve rate could cause mortgage interest rates to lower slightly as well.

Rental Market
The rental market has remained strong. However, vacancy rates have climbed slightly in recent months. Only about 7-9% of the total rental market is vacant, awaiting tenants. With higher mortgage rates, many would-be buyers have elected to rent, which has kept rents strong.  The short-term rental market (VRBO), continues to report higher vacancy rates and softening prices. One exception noted is VRBO properties located in popular areas or unique destinations.

Foreclosures
The local foreclosure market has grown slightly in recent months, with approximately 204 single-family properties in some stage of foreclosure in Shasta County. The recent uptick in foreclosure activity combines several factors, one being the reduction in loan modifications offered during the pandemic and the cost of inflation.

Insurance
Obtaining reasonably priced insurance continues to be a challenge for many in the local Shasta County market and the State of California. Many purchasers have experienced sticker shock after discovering that policies have doubled or tripled over the past year. In addition, some companies have refused to write home insurance policies, making the time and ability to locate insurance even more challenging. Homes located in rural areas are the most prone to challenges and require careful attention and research to locate the best options. The challenges of higher construction costs and wildfire losses have contributed to the overall policy rate increases.

National Association Of Realtors Policy Change (NAR)
In recent weeks the National Association of Realtors reached a settlement agreement for a major lawsuit out of Missouri. The settlement not yet approved by the court requires NAR to pay 418 million and make two significant policy changes. First, starting in July home sellers will no longer be able to have their listing agent advertise a buyer broker commission on the MLS. Second, buyers agents will be required to sign a buyer broker agreement with a potential buyer prior to showing a home. The policy shift could have massive impacts on how agents facilitate services in the future. We believe this could be a positive change for the industry but will take some time to get used to.  To Learn more you can watch a podcast where Josh explains the changes in detail. The link is provided here -> Josh Barker Podcast #28

Market Summary March 2024

Summary Statistics March 2024

Active New Listings March 2024

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Make it a great April,
Josh Barker

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P.S. You can view all of our past real estate market updates by visiting www.reddinghomes.com/blog

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