Homes Sold Report
Homes sold in the month of November finished at 152 down from the 290 that closed in November of last year, a decrease of 47.6%. The previous interest rate peak of nearly 8% was a large factor in the reduction of overall homes sold for the month of November.
Active Listings Report
The total homes for sale in the month of November finished at 782 up from the 650 homes for sale in November of last year, an increase of 20%. Inventory has remained stubbornly low in recent months with November’s new listing to market finishing at 216 down from 301 new listing in the month of November last year. It appears that home sellers have little appetite for giving up low-interest rates for today’s higher interest rates.
Mortgage interest rates showed signs of improvement at the beginning of December with rates averaging 6.5% for a 30-year fixed mortgage down from the highs of nearly 8% several months ago. Home buyers utilizing financing have responded well to the lower rates with a noticeable increase in home search activity.
The Rental Market has shown signs of cooling off after a strong run. Recent feedback from multiple property management companies indicated that overall applications are down compared to last year. This new trend combined with higher vacancy could lead towards softer rent prices in the future.
New construction has had its challenges in recent months as mortgage interest rates inched higher. As of December 1, 2022, the Shasta County MLS reported 46 new homes for sale with an eye-catching 7 new homes in escrow. In addition, several large home builders have reduced prices in an attempt to attract would-be home buyers. The long-term prospects of new construction are strong but will have its challenges in the short term.
Josh Barker Real Estate