From the Desk of Josh Barker
As we move into the heart of the summer market, Shasta County real estate continues to reflect a shifting landscape. While buyer interest remains solid and inventory continues to rise, the market is clearly becoming more balanced. This transition brings both opportunities and challenges, depending on how well-positioned each buyer or seller is.
In June 2025, 205 homes closed escrow, a slight decrease of 3.8% compared to June of last year. Year-to-date sales are down 7.2%, signaling a softer but still active market. Encouragingly, average days on market dropped to 86 days, down from 94 earlier in the year—indicating that well-priced homes are continuing to move.
The average sale price for the month came in at $405,221, down 6.66% year-over-year, while the median sale pricesettled at $379,000, a 2.82% decline from last June. However, on a year-to-date basis, both average and median prices remain slightly up—suggesting that pricing overall is holding steady, especially in the $300,000 to $500,000 range.
Inventory continues to grow, with 968 active listings this June—up 29% from the same time last year. There were also 327 new listings added in June, marking a 13.9% increase. The growing selection is giving buyers more leverage while making it essential for sellers to stay competitive in terms of price and condition.
Pending sales remained relatively unchanged at 219, showing that buyer interest is still present despite more cautious decision-making. The absorption rate rose to 5.14 months, compared to 3.83 months a year ago—a notable 34% increase—reflecting this shift toward a more neutral market.
Interest rates averaged 6.75% in June, a small but welcome improvement from recent months where rates hovered above 7%. This subtle shift has sparked renewed interest for some buyers and could signal positive momentum heading into the fall if the trend continues.
New construction remains measured, with Palomar Builders and DR Horton accounting for most of the current activity. Builders continue to proceed with caution due to elevated costs and longer sell times, but demand for clean, move-in-ready homes is still strong—particularly among relocation buyers and downsizers.
The long-term rental market is holding at a vacancy rate of around 8%, suggesting a softening in that segment as more rental inventory comes online. Meanwhile, short-term rentals are seeing a contraction, as owners shift to long-term leasing or choose to sell. Recent city regulations, combined with operational burdens, are prompting some to exit the short-term rental space altogether.
Distressed Property Concerns
The distressed property market has remained largely unchanged over the past month, with no significant increase in pre-foreclosures, auctions, or bank-owned inventory. That said, a growing area of concern involves loan products with temporary interest rate buy-downs that are set to reset in the near future. While borrowers were initially required to qualify at the fully amortized rate, the reality of higher living costs—utilities, insurance, and consumer goods—may create difficulty for some when their payments increase. This is something to watch closely in the coming months as those resets begin to occur.
Fallout Rate and Appraisal Issues
We are also seeing a notable increase in the escrow fallout rate—the number of transactions that fail to close after entering into a contract. The leading causes are property condition concerns and challenges with appraisals. More appraisers are turning to AI-assisted tools to expedite valuations, but these automated systems often fall short when it comes to understanding the local nuances of our market. In many cases, human appraisers remain better equipped to apply logical and reasonable adjustments, especially for homes with unique features or locations.
As always, if you’re considering buying or selling, or just need an honest conversation about where things stand, feel free to reach out to my office at 530-222-3800 or reply to this email. My team and I are here to help you navigate with clarity and confidence.
Warm regards,
Josh Barker
Josh Barker Real Estate
DRE# 01277485
530-222-3800
https://www.reddinghomes.com/blog/jul...
Информация по комментариям в разработке