After a stretch of elevated mortgage rates, quieter listings, and buyers waiting on the sidelines, the housing market in Redding, CA is finally showing momentum again. Sellers are stepping forward. Buyers are re-evaluating what’s possible. And for the first time in a long while, the market isn’t stuck, it’s shifting.
This isn’t a dramatic surge or a sudden frenzy. But we are seeing the early stages of a meaningful comeback that could build stronger momentum heading into 2026, particularly across Redding and the surrounding Northern California communities.
So what’s behind the change? Here are three key trends quietly reshaping the local housing market right now.
1. Mortgage Rates Are Trending Down
Mortgage rates naturally fluctuate, but when you zoom out, the broader trend has been moving in a more favorable direction. Rates have eased through much of 2025, and buyers are now seeing some of the most attractive opportunities of the year.
Freddie Mac’s Chief Economist, Sam Khater, explains why this matters:
“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”
For buyers in Redding, that translates to real purchasing power. A lower rate can mean a lower monthly payment, or the ability to afford a higher-quality home or better location than what felt possible just months ago. Recent data also shows that a buyer with a $3,000 monthly budget can now afford roughly $25,000 more home than they could a year ago.
Small shifts like these can create meaningful financial advantages when timed correctly.
2. More Homeowners Are Finally Listing Their Homes
For several years, many homeowners delayed selling due to what economists call the lock-in effect, hesitation to give up historically low mortgage rates. As rates gradually ease and life circumstances evolve, more people are deciding it’s time to move.
That shift is bringing much-needed inventory back to the Redding market. According to Realtor.com, housing inventory is climbing toward levels not seen in nearly six years. More inventory means more choice, more negotiating room, and a healthier balance between buyers and sellers.
When people move for the right reasons, career changes, growing families, downsizing, or relocation, it strengthens the market for everyone involved.
3. Buyers Are Re-Entering the Market
It’s not just sellers stepping forward. Buyers are returning as affordability improves and more listings become available. The Mortgage Bankers Association reports purchase applications are up compared to last year, signaling renewed demand.
Looking ahead, economists at Fannie Mae, the Mortgage Bankers Association, and the National Association of REALTORS® all expect steady growth in home sales heading into 2026. Not a rush, but a sustainable, long-term climb.
This measured return to activity is exactly what many buyers and sellers in Redding have been waiting for: opportunity without extreme pressure.
Bottom Line
After several quieter years, the housing market in Redding, CA is gaining traction again. Lower mortgage rates, growing inventory, and stronger buyer activity are paving the way for real movement as we approach 2026.
If you want to understand how these shifts affect your next move in Redding, Anderson, Shasta Lake, or Palo Cedro, a conversation with The Barrett Team can help you position yourself wisely, whether you’re planning to buy, sell, upgrade, downsize, or simply explore your options.
The market is turning a corner. When you’re ready, The Barrett Team can help you turn the right way with it.
