By Daniel Radmanovic
Data released last week for the first quarter of the year show early signals that Redding's real estate market may be headed for an uptick.
The number of overall sales in town may have decreased slightly from the same time period last year, but the inventory of homes available on the market continues to trend lower. Sales declined from 21 homes sold in the first quarter of 2018 to 17 homes sold during first quarter of this year, however the 13 pending sales as of Friday could help boost that number.
The decline may be due in part to less homes on the market available to buyers. In a positive development, the high inventory of available properties that has plagued Redding real estate in recent years has started trending lower during the past year. The number of active listings has declined more than 31 percent during the past year alone with about 77 homes listed as of Friday.
There are also early signals that the average days on the market for local properties is beginning to trend lower as inventory moves. Average days on the market declined by more than five percent during the first quarter, as older properties are moving off the market and newer listings are coming on.
Another positive trend are indications that younger families are moving back into Redding, raising the potential for increased demand. The town's school district recently requested a near five percent increase in spending due in part to increasing enrollment as more families are attracted to the highly ranked district.
The average sales price for single family homes in Redding declined during the first quarter by about 15 percent to $454,676. The decline however was impacted by several outlier properties that sold for under $250,000 during the period. The data shows average prices increased overall during 2018 by more than 19 percent from the previous year - a larger and more accurate dataset.
While some of these trends are too early to base long term projections, a continued decline in inventory and days on the market in the coming months could lead to increased demand and an upward pressure on pricing as we head into the summer real estate season.