In this article, our focus will be on the Redding real estate market trends and investment opportunities in 2020. If someone says northern California, the first thoughts that typically come to mind include big markets like San Francisco, San Jose or Oakland.
If you get more specific and say the Sacramento Valley, people immediately think about the state’s capital, Sacramento. Yet it is smaller cities in the region like Redding that have better market fundamentals. Let’s learn more about Redding, California, before we outline top reasons to consider investing in the Redding real estate market.
Redding is the county seat of Shasta County in northern California. It is closer to the Oregon border than Sacramento, and it seems a world away from the hot coastal market. Shasta is home to nearly a hundred thousand residents.
The Redding housing market is generally considered to include Shasta Mountain, California located a short distance to the north. That is home to Shasta Lake. This makes the Redding housing market the sixth largest in the Sacramento Valley, though it is small for a Californian city.
Is Redding going to be one of the best markets for real estate investing in 2020? Let’s take a deep look at the latest Redding housing market trends to come to a conclusion. We shall discuss some important statistics such as – market forecast, median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in Redding, California.
Redding Real Estate Market Forecast 2020
The real estate data from Zillow shows that the current median home value in Redding is $281,700. Redding is currently a seller’s market – which means that there are a lot of qualified buyers in Redding and not enough homes for sale in the market.
The home prices have risen by 5.2% over the last year. And looking forward into the coming year, the Redding real estate market forecast is that home prices will continue to rise by 4.7%.
Here is the Redding, CA real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 4.7% till Oct 2020.
The median list price per square foot in Redding is $188, which is higher than the Redding Metro average of $187. The median price of current listings in Redding is $319,000 and the median price of homes that have been sold out is $276,700. The median rent price in Redding is $1,515, which is higher than the Redding Metro median of $1,495.
Zillow reports that 23% of the listings in Redding had a price cut in Oct 2019, which is a good thing for buyers. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices.
Redding Housing Market Forecast 2019 – 2021
Here is a short and crisp Redding housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Redding is 64% and it is predicting a positive trend.
The LittleBigHomes.com estimates that the probability for rising home prices in Redding is 64% during this period. If this price forecast is correct, the Redding home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Redding, CA Real Estate Market Forecast.
Redding Real Estate Market Trends
We shall now discuss some of the most recent housing trends in the Redding area. Trulia has currently 648 resale and new homes for sale in Redding, CA including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sales price in Redding is $278,250 and homes are selling for about $179/sqft.
Some of the most popular neighborhoods in Redding are North Redding, Enterprise, Sherman, Girvan, etc. Here you’ll find the maximum no. of homes for sale. There are currently 45 homes for sale in Enterprise, Redding, CA. The home prices in Redding, CA range from $19,900 – $1.5M.
Homes for Sale in Enterprise, Redding, CA have a median listing price of $248,250 and a price per square foot of $163. Homes for Sale in North Redding, Redding, CA have a median listing price of $325,000 and a price per square foot of $191.
There are currently 45 homes for sale in Girvan, Redding, CA. The home prices in Girvan range from 59,000 – $5.4M. The median sales price in Girvan is $235,000 and the Average Price/sqft is $178.
There are 634 homes for sale in Redding, CA on Realtor.com. The new listed homes for sale are 32. The asking price of single family homes can start from $95,000 and can go up to $1.49M for a luxury property located in the Sunset neighborhood in the city of Redding, CA.
There are currently 99 rental properties in Redding, and their rent prices range from $460 to $2.8K per month. The median rent in Redding is $1,420. There are 43 new construction homes for sale in Redding within a price range of $289,900 to $1.35M.
According to their statistics, in October 2019, the Redding housing market was a buyer’s market, which means there were roughly more active homes for sale than there were buyers. It also means it’s a market where prices may drop over time as home owners become more and more eager to sell their property.
In October 2019, the median list price of homes in Redding, CA was $309K, trending up 3% year-over-year. The median listing price per square foot was $187. The median sale price was $338K.
On average, homes in Redding, CA sell after 43 days on the market. The trend for median days on market in Redding, CA has gone down since last month, and slightly down since last year.
The median list price in Redding is $313,500 on Movoto.com. The median list price in Redding went down 1% from November to December. Redding’s home resale inventories is 8, which decreased 20 percent since November 2019.
The median list price per square foot in Redding is $189. In November 2019 it was $189. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in December.
Redding, CA Single & Multi-Homes Statistics
Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.
The average sales price of new homes sold in the U.S. fell by 1.6% year-over-year in July 2019, to $388,000, according to the U.S. Census Bureau. In fact, the median sales price of new homes sold fell by 4.8% to $312,800 over the same period.
For existing homes, the median price was up by 4.3% to $280,800 in July 2019 from a year earlier, according to the National Association of Realtors. July’s price increase marks the 89th consecutive month of year-over-year gains. Demand remains robust. During the year to July 2019, new and existing home sales increased by 4.3% and 2.5%, respectively.
As per the real estate company called Neigborhoodscout.com, the median house price in Redding, CA is $157,370, which indicates that home prices in Redding are near the national average for all cities and towns in the United States.
Single-family detached homes are the single most common housing type in Redding, accounting for 65.45% of the city’s housing units. Three and four bedroom single family detached homes are the most common housing units in Redding.
Other types of housing that are prevalent in Redding include large apartment complexes, duplexes, homes converted to apartments and a few row houses. Redding has a mixture of owner-occupied and renter-occupied housing.
After the great recession of 2008, renting a home has increased exponentially across the nation. There are currently over 136.57 million housing units in the U.S.
In 2018, the total number of homeowner households hit an all-time high of 76.2 million. 36.6% of households rent their homes and 64.4% buy their homes (2018 U.S. Census Bureau).
Currently, there are 364 single family homes for sale in Redding, CA on Zillow. Additionally, there are 60 single family homes for rent in Redding, CA.
Under potential listings, there are about 7 Foreclosed and 74 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Redding, CA Foreclosures And Bank Owned Homes Statistics
As per the Redding foreclosure statistics by Zillow, the percent of delinquent mortgages in Redding is 0.7%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Redding homeowners underwater on their mortgage is 7.0%, which is lower than Redding Metro at 7.2%.
|Total No. of Foreclosures in Redding||105 (RealtyTrac)|
|Homes for Sale in Redding||348|
|Median List Price||$288,250 (2% drop vs Sep 2018)|
There are currently 105 properties in Redding, CA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 348.
In October 2019, the number of properties that received a foreclosure filing in Redding, CA was 125% higher than the previous month and 71% higher than the same time last year.
Best Neighborhoods to Invest in Redding Real Estate
If you are looking to invest in the Redding real estate, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.
Desirability brings demand. Demand would raise the price of your Redding rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Redding real estate, you need to find places where the expected property appreciation forecast is positive.
The running costs for owning and managing an Redding investment property should be low. The neighborhoods in Redding must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services, schools and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 36 elementary schools, 30 middle schools, 21 high schools and 21 private & charter schools in Redding, CA. There are 58 neighborhoods in Redding. Some of the best neighborhoods in Redding, California are Grant, Girvan and North Shasta View.
Grant has a median listing price of $550K, making it the most expensive neighborhood. South Bechelli is the most affordable neighborhood in Redding, with a median listing price of $204.9K. Here are the best neighborhoods to invest in Redding real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
|1||Simpson U / College View Dr|
|2||Old Oregon Trl / Collyer Dr|
|3||Rancho Rd / Alta Camino Dr|
|4||Benton Dr / Quartz Hill Rd|
|9||Bechelli Ln / Hartnell Ave|
|10||Churn Creek Rd / Whistling Dr|
How is Real Estate Investing in Redding, California?
Investing in good real estate markets is touted as a great way to become wealthy. Is Redding a Good Place To Invest in Real Estate? Many real estate investors have asked themselves if buying a property in Redding is good investment?
If you want to find out whether Redding real estate is a good investment or not, you need to drill deeper into local trends. The Redding real estate trends will tell what the market holds for the year 2020.
We have already discussed the Redding housing market forecast for 2020. Purchasing an investment property in Redding real estate is a little different from shopping for your car or primary residence.
While you still want to get the most for your money, if you are looking to make a profit, you don’t want to buy the most expensive property on the Redding real estate market and expect to make a good profit on rents.
Perhaps you are looking for a slightly different hold-over, an investment property in Redding that you might move into or sell at retirement in the future! Either way, knowing your profit potential and purpose is the first thing to consider.
Let’s take a look at the number of positive things going on in the Redding real estate market which can help investors who are keen to buy an investment property in this city. We’ll focus on real reasons to invest in the Redding real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. The Affordable Redding Real Estate
The terms cheap and real estate rarely go together when you’re talking about California. The median home price in the Redding real estate market is roughly 280,000 dollars. While that’s well above the national average, it is a bargain compared to the half million dollar hovels in San Francisco and LA.
2. The Relatively Landlord Friendly Environment
Relative is the key word in this section. California as a whole is hostile to property owners and favors tenants in nearly every regard. One example is the state level rent control law that recently passed. However, the degree varies, and that matters. For example, the Redding real estate market didn’t have local rent control laws before the state passed its mandate.
The Redding area is better in other respects, too. San Francisco makes it nearly impossible to redevelop properties even though they have problems with basic sanitation. Los Angeles, San Francisco and other major cities make it almost impossible to evict tenants even with cause, and evicting someone who isn’t paying rent takes a relatively long time.
3. The Relatively Low Tax Burden
The average property tax rate in Shasta County, the jurisdiction of every Redding real estate investment property, is 0.63 percent. The average resident pays a property tax rate of roughly 0.8 percent. The lower average home prices in the Redding real estate market result in an even lower property tax bill each year.
4. The Impact of Geography
The Redding real estate market is bounded on three sides by the Shasta Cascades. In short, it is surrounded by mountains except to the south, and much of that area is already developed. So is the area to the north, namely Shasta, California. Another factor is all the state parks around the city; these areas are off limits to development.
5. The Steady Real Estate Appreciation
One point in favor of Redding real estate investment is that it is stable. The Redding housing market saw roughly five percent appreciation in 2019. They’re slated to see roughly five percent appreciation in 2020. While this seems inferior to the double digit appreciation seen on the Pacific coast, it also means the Redding real estate market isn’t going to suffer serious depreciation if a tech bubble bursts.
6. The Impact of Recent Local Disasters
The Redding housing market suffered a major loss of inventory with the Carr Fire. More than a thousand buildings were destroyed, and thousands more were damaged. If you want to find properties ripe for renovation, this creates an interesting opportunity to buy a Redding real estate investment property.
You could also find gutted homes that could be torn down and replaced with a brand new Redding real estate investment property. You’d see relatively strong demand for such a home, and you would be able to get it at a discount from distressed sellers. Nor is the area so hot that developers are going to flock here to build many new homes, something that would lower property prices and rental rates.
7. The Economics that Drive People to Rent
The Redding real estate market may be affordable by Californian standards, but it is not affordable for many local would-be property owners. Only half of residents own their homes. This is partially due to the average wages but above average cost of living (eight percent higher than the national average). Another issue is the relatively large number of tourists who pass through, whether they stay for the mild winters or enjoy the outdoor activities in the area.
8. The Decent Rental Rates in Reading
One point in favor of the Redding housing market is the relatively high rental rates. The average apartment rents for around 900 dollars a month. A single family home in the Redding housing market easily rents for over 1100 dollars a month. For a large three or four bedroom home, you could charge 1500 dollars a month or more. The modest tourism market raises the possibility you could earn even more via short term rentals.
9. The Diversified Local Economy
Redding is a regional services hub. This gives it a much more diversified and stable economy than towns that cater exclusively to tourists. Two different medical centers together employ nearly three thousand people. The county government, city government and local school district are also among the biggest employers.
Shasta College employs several hundred, and local government services are generally based here. For example, the California Department of Transportation regional office is located here. The area is also home to a number of small and midsized manufacturers.
While most jobs are low paying service jobs, this is better than the irregular seasonal or lower paying jobs in agriculture and forestry that dominate the area. This has the side benefit of making the Redding / Shasta area one of the best rural economies in the country, and it attracts many people from around the Pacific Northwest who want to enjoy steady employment and a rural lifestyle.
10. The Student Market
The Redding real estate market is home to a relatively large student market. Institutions of higher education in the area include Shasta College, Simpson University, Redding Institute of Technology, Shasta Bible College, and National University. It also means that there are several schools for you to choose from when shopping for a Redding real estate investment property that caters to students.
Investing in Redding Real Estate: The Conclusion
Maybe, you have done a bit of real estate investing in Redding, CA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
Redding is a stable, semi-rural area that enjoys slow, steady growth. For investors, it provides an opportunity to profit from one of the most hospitable rental markets in the state.
A good cash flow from Redding investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Redding real estate investment opportunity would be a key to your success. If you invest wisely in Redding real estate, you could secure your future.
If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. Most investors naturally gravitate to residential property investment.
When looking for the best real estate investments in Redding you should focus on neighborhoods with relatively high population density, employment growth and strong appreciation potential.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing locally in the Redding real estate market.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Redding real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2020
Another good market to choose for real estate investment is Waco, Texas. The Waco housing market has a number of points in its favor. It isn’t just a college town; it is a stable, steadily appreciating real estate market that offers high returns despite low property prices.
About 40 percent of Waco’s residents rent. While that isn’t much higher than the national average, it is surprisingly high given the relatively affordable real estate. One factor is the relatively low paying jobs in the area. The median household income is 40,000 dollars a year, roughly 20K below the state average.
Per capita income is around 22,000 dollars a year. Factor in the average 1000 dollar a month rent, and many who live here simply can’t afford to buy a home. These conditions promise good returns & cash flow for who those who’d like to invest in the Waco rental real estate.
The other best place to invest in real estate is Winston-Salem, NC. The Winston-Salem metro area offers a steady, slowly appreciating real estate market poised for long-term growth. Combine this with a tax and legal climate friendly to investors, and it is worth considering.
The strong local economy is a good reason to consider Winston-Salem real estate investment. The local economy is seeing 1.6 percent job growth per year. It will have better than average job growth for the next ten years. This is one reason why people are moving to the Winston-Salem housing market. More importantly, because the city’s economy isn’t tied to a tech bubble or government growth, it won’t suffer a collapse if one industry busts, either.
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Updated Market Prices, Trends & Forecasts
Relatively landlord friendly rules
Relatively low taxes
Economics that drive renting