May 2024 Market Update Report

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From the Desk Of Josh Barker

MARKET UPDATE FOR May 2024

Homes Sold:
The real estate market in April showed significant strength in sales volume. A total of 187 homes were sold, reflecting a 15.4% increase from last year when 162 properties were sold. This positive growth indicates strong buyer activity and confidence in the market compared to last year.

Pending Homes Sales:
Pending home sales also showed positive momentum, with 247 homes under contract at the end of April, up 6.5% from last year's 232. This uptick in pending sales is surprising considering higher mortgage rates.

Inventory and New Listings:

The total number of homes available for sale at the end of April was 602, a 3.8% increase over last year's 580 listings. Additionally, the market welcomed 381 new listings in April, marking a significant 16.2% rise from the 328 listings introduced in the same month last year. The increase in new listings helps to meet the growing demand and provides more options for buyers.

Mortgage Rates:
Mortgage interest rates have seen an upward trend, currently averaging 7.75%, which is up from 6.95% last year. Higher mortgage rates may influence buyer affordability but are the largest tool at the Fed's disposal to deal with inflation. It is expected that mortgage rates may drop slightly by the end of the year.

New Construction:
There has been a noticeable acceleration in new construction, with the city of Redding reporting 27 new permits pulled year-to-date through March, a substantial increase from just 5 in the previous year during the same period. This growth has been significantly influenced by DR Horton, a major national home builder, suggesting a bit more optimistic view of the housing market..

Rental Market
The rental market remains strong, with vacancy rates consistently below 8%. The average rent for a 3-bedroom, 2-bath home with a 2-car garage is now $2,092 per month in the Redding area, indicating a steady rental market that supports investment in residential properties. The short-term rental market is a bit softer with reported higher vacancy rates and prices.

Bottom Line:
Overall, the April market data reflects a growing real estate environment, increased home sales, higher home inventory, and sustained rental market strength, despite rising mortgage rates. 

City of Redding Buidling Stats for March 2024

Market Summary May 2024

Shasta County Market Update Summary May 2024

Active Listings May 2024

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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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