We’re seeing more buyers, and fewer homes to sell

This post was published 8 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

Local housing inventory for sale is down. From our perspective on the ground, we’re seeing an increase in serious buyers. In addition to regular homebuyers, real estate investors seem back in the game. This is quite different than the dynamic we’ve experienced over the last couple years. October was a slow month for home sales, but only because we don’t have the inventory to supply willing buyers. That’s new.

One month’s results doesn’t equal a trend, necessarily. But it may be a leading indicator. In a market governed by supply and demand, this trend would ordinarily mean that prices would start to go up in response to increased demand and reduced supply. But local housing is no ordinary market. Government directly controls mortgage lending with Freddie Mac and Fannie Mae. And a combination of government and banking interests directly control housing inventory through manipulation of the shadow inventory of foreclosures and short sales. The regular laws of supply and demand are out the window. Or at least subjected to the whim of unseen forces. Here’s the latest chart:
Local real estate market redding caThe big bars show inventory by month over the last 2 years. It’s down. Here’s the numbers behind the chart:
local home sales near redding caSales are off sharply, but again, not demand. You may see different results posted elsewhere. We use sales data from the Redding metro region we consider to be our local market, regardless of county lines. An area roughly from Whiskeytown to Shingletown, and from Lakehead to Lake California. With approximately 77,000 housing units in Shasta County, sales of about 168 in a month just about equals a rounding error. So it’s hard to draw any conclusions, but our subjective viewpoint is this:

It’s a bit frustrating to have willing buyers, and not much to sell.

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2 thoughts on “We’re seeing more buyers, and fewer homes to sell

  1. matt swope

    Any word of the foreclosure inventory freddie and fannie are holding back? Are there any plans of them releasing that inventory?

    Reply
    1. Skip@RHB Post author

      I read somewhere they are thinking of renting them out. I haven’t seen that yet. Meanwhile there is virtually no transparency in operations or directives of either Freddie or Fannie, so your guess is as good as mine as to why they are sitting on shadow inventory. Sad really, since these are government owned institutions.

      Reply

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