REDDING REAL ESTATE MARKET:SIGNS OF STABILITY?
INDUSTRY NEWS, SHASTA COUNTY, SHORT SALES, TIPS FOR BUYERS, TIPS FOR SELLERS
August 17th, 2008
In order to make sense of all the data regarding the local real estate market, I have 
developed a system to track pending sales and active listings on a weekly basis. I feel this is a good barometer of local real estate market activity.
For example, when the market was at its peak in the Fall of 2005, only 550 homes were listed for sale in the entire Shasta Multiple Listing Service, and more than 980 were in escrow (pending). Today, there are 1882 homes for sale and 400 in escrow. The worst numbers were in July 2007, with 2150 homes for sale and only 362 in escrow. Looking at ratios of homes for sale vs. pending sales make comparison easy. At the peak, there were nearly 2 homes in escrow for every single home for sale. At the worst, there were nearly 7 homes for sale, for every home in escrow. In my opinion, the market would be in balance if there were 2 homes for sale for each home in escrow.
In 2008, the inventory levels for Redding/ Shasta County have been amazingly stable. We started the year with 1677 listings and 254 pendings. Wintertime typically sees a dip in inventory. Inventory peaked in late spring with just over 1900 homes listed for sale and has held steady since. The number of pending sales gradually increased since the beginning of the year fueled by bargain hunters snapping up foreclosures and first-time buyers seeing an opportunity to buy while others are wallowing in pessimism.
Homeowners that had no pressing need to sell have, for the most part, pulled out of the marketplace waiting for better times. Those that have to sell, and have enough equity to price their property at or below the market, are out there competing with distress sale listings for the scant number of buyers looking for bargains. Bank repo’s and short sale properties are making up a larger and larger segment of the available homes. Nearly 50% of the homes in escrow are foreclosure or preforeclosure sales.
If you wish to jump into the market as a buyer or seller, please feel free to contact me for a free consultation:
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
I guess the relationship between listings and “in escrows” is useful, but a better measure might be listings to completed sales. You’d have to wait a little longer for the data, but hasn’t the percentage of transactions that fall out of escrow changed in recent times?
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