The Tariff Effect: What Buyers and Sellers in Shasta County Need to Know
If you’ve been wondering whether the real estate market is cooling, heating up, or simply in limbo—you’re not alone. Between interest rate chatter, talk of tariffs, and looming recession whispers, the headlines have been noisy. But let’s cut through that and focus on what’s actually happening here in Shasta County.
In this blog, we will walk you through the real story behind the numbers from March 2025 and what we’re already seeing in early April.
🏡 Q1 Market Update: Where We Stand
Absorption Rate
This tells us how quickly homes are selling. In March 2025, the absorption rate was 3.72 months—up from 2.88 in March 2024. That puts us closer to a neutral market, but sellers still have a slight edge.
Despite this, the feel of the market is tipping in favor of buyers—many are negotiating for closing cost credits and price reductions due to ongoing affordability concerns.
💸 Interest Rates & Affordability
Interest rates hovered in the mid-6% range during March, about the same as last year. However, volatility remains—rates have spiked into the 8s over the past year. With a new presidential administration, experts are hoping for more consistency.
While we may not see 5% rates in 2025, there’s cautious optimism for that possibility in 2026, depending on economic performance.
📈 Inventory & Buyer Behavior
Good news for buyers: inventory is up.
705 active listings in March (up 26% YoY)
346 new listings, a 13% increase from last year
Even with more choices, buyers are moving more slowly. They're cautious and analytical, taking longer before writing offers.
Sales:
186 homes sold in March (a slight 2.6% dip from last year)
YTD home sales are down nearly 12%, largely due to uncertainty around the January presidential transition.
🏷 Home Values: Still Holding Strong
Median Sales Price:
March 2025: $373,000
March 2024: $365,000
A 2.2% increase year-over-year. This shows encouraging stability in home values, even as other dynamics fluctuate.
Days on Market:
Homes are taking about 60 days to go under contract (106 days total including escrow)
🧠 Strategy for Sellers: Price + Patience
Buyers are sharp—they're comparing homes, calculating payments, and analyzing everything from fire zones to insurance costs.
Pro tips:
Homes priced at or below fair market value still see action.
Those aiming above market may sit longer.
In 2024, homes sold at 98.4% of asking. This year? Closer to 95%.
If you’re selling, be strategic, patient, and realistic—especially if you’re not in a "must-sell" situation.
🌍 National Economy Meets Local Market
This April brought more uncertainty—tariffs made headlines again, prompting fluctuations in bond yields (and by extension, mortgage rates). While some expected a big drop in rates, the reality was more modest. And with a pause on tariffs (except for China), lenders are still in wait-and-see mode.
For some buyers, that means hitting pause. For others, it’s a green light for opportunity. Whether this becomes an “American reset” or just more turbulence is still TBD—but prepared buyers and sellers will be ready either way.
🧭 Final Takeaway: Stay Local, Stay Informed
Yes, national news can be daunting—but our local market is holding its own. Inventory is rising, prices are stable, and even amid uncertainty, opportunity still exists.
If you’re buying, selling, or just figuring out your next move—we’re here to help. Don’t navigate this alone. Get expert guidance and a personalized strategy for your next step in the market.
Want to stay in the loop?
I highly recommend checking out:
📱 Mortgage News Daily for daily rate updates
🎥 “The Hot Sheet” by BAM on YouTube for housing headlines and trends
Let’s navigate this market together—with confidence. 💼🏠
Until next time, stay rooted in Reading.
—Faith Barrett
