Shasta County Market Update - May 2023

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MARKET UPDATE FOR MAY 2023

The real estate market in Shasta County is facing some challenges due to higher mortgage interest rates, which have led to a decrease in buyer demand and new listings. However, lower home inventories have helped to support home values, particularly for homes valued below 450k. The new construction industry has been impacted significantly, and home builders are focusing on completing existing projects while watching for signs of home price stability. The rental market has shown some signs of strengthening, likely due to the higher cost of mortgages pushing some would-be homebuyers into the rental market. Overall, while there are challenges in the market, there is also some good news for homeowners, especially for those with homes valued below 450k. This month we will dive into some of the hottest topics in the local market trending now... If you have any questions please feel free to respond to this email or contact us at 530-222-3800.

Homes Sold

Homes sold in the month of April finished at 154 down 46.5% compared to April of Last year when homes sold reached a total of 288 homes sold. The higher interest rate environment has played a significant role in reducing buyer demand.

Homes For Sale

The total homes for sale in the month of April averaged 545 down 9.5% compared to the month of April last year when the total number of homes for sale averaged 604. Lower home inventories have helped to support home values over the past year as a spike in inventory could have pulled home values down much faster and deeper.

New Listings In April

The total of new listings coming to the market in the month of April averaged 325 down 25.3% compared to April of last year when new listings coming to market averaged 435. It is reported that nearly 40% of all existing mortgages are priced below 4% making homeowners more reluctant to give up such favorable rates for the rates of today.

Interest Rates

Currently, interest rates on 30-year fixed mortgages are averaging 6.5% up 1% compared to April of last year when mortgage rates averaged 5.5% for a 30-year mortgage. Many of the banking industry's leading experts predict that mortgage rates could remain in the 6% range through the balance of this calendar year.

New Construction

New construction permits pulled through March 2023 in the City of Redding totaled 5 down 92% compared to the same period of time in 2022 when 61 permits were pulled. Home builders are currently focused on completing existing projects and watching the real estate market closely waiting for signs of home price stability.

Rental Market

The residential rental market has shown signs of strengthening over the past month as rental applications are up. A portion of the increased demand is seasonal. However, the higher cost of mortgages has pushed many would-be home buyers into the rental market.

Home Values

After a long year of price declines in Shasta County due to high mortgage interest rates, there appears to be some good news in sight for homeowners. Homes valued below 450k have experienced more price stability as buyer demand has remained high relative to supply and competitive offers have become more common.

Below are a collection of slides that correlate with many of the topics discussed in this mid-year review. As always, if you have any additional questions please feel free to contact us at 530-222-3800 or simply respond to this email.