Government Shutdown Vs. Redding Real Estate
From The Desk Of Josh Barker at RE/MAX
Our Government may be shut down, but people in Redding are still purchasing homes! With all the crazy talk coming out of Washington, you would think that people would be getting nervous. If so the numbers have not reflected it. In fact, sales in the month of September were on pace for the same volume as one year ago. Maybe everyone is just getting used to the continued noise from all the media. Below are a few hot topics you will want to know about.
With the government shut down, ,more complex loans like multi family, commercial, and investors who own multiple properties will see the largest impact. The IRS and most of social security is shut down. If a loan underwriter requires documentation from one of these departments it will have to wait. For most home owner purchases, there will be little to no effect, other than slightly longer escrow periods.
Interest rates are currently holding at 4.5%. We don’t expect to see them stay there. The federal reserve has repeatedly stated that interest rates will be increasing in the future. Interest rates are projected to be as high as 4.8% on average by the end of the year. Over the next 12 months rates are projected to be nearly 6%.
Home inventory in Redding
The availability of homes in the Redding area have stabilized. After watching inventory decline in the first portion of the year, the supply of homes has increased and is currently just over 900. We are predicting that home inventory will remain stable or decrease slightly through the winter months. If you are selling a home during this period, there will be less competition than at any other time of the year. To view our marketing plan click here.
New home construction
There are multiple new housing projects currently being built in the Greater Redding Area. On the north side of Redding (by the mall) there are 2 housing projects. On the east side of town (off airport road) there is a large housing project. In Anderson (by Safeway) is 1 large housing project and in West Anderson there are 2. There are still multiple subdivisions with vacant lots that builders are slowly acquiring.
The average sales price in the Redding are is currently $211,000. Last year at this time the average sales price was $200,000. We are predicting that prices will remain stable for the remainder of the year.
Josh Barker & Associates Statistics for September
|Homes listed for sale||15|
|Homes sold for sellers||14|
|Homes sold to buyers||14|
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