The real estate market in Shasta and Tehama Counties has entered 2025 with notable changes and opportunities, reflecting shifts in buyer preferences, economic conditions, and inventory dynamics. Here’s an up-to-date analysis:
1. Property Prices and Market Activity
• Shasta County: The median home price has risen to approximately $385,000, reflecting a modest year-over-year increase of 2.7%. Larger parcels and properties near Redding continue to be in demand, especially for those seeking a balance between rural charm and urban conveniences.
• Tehama County: With a median price hovering around $305,000, Tehama County remains an attractive option for buyers seeking affordability. The demand for vacant land and rural properties has spiked, driven by families and investors looking for more space and value.
2. Inventory and Supply
• Inventory levels are gradually improving, with a slight increase compared to 2024. Shasta County reports about 3.1 months of supply, while Tehama County has around 3.5 months, signaling a transition from an extreme seller’s market to a more balanced one.
• Land Sales: Land listings are gaining traction, particularly parcels offering flexible owner financing, proximity to utilities, and opportunities for custom builds. These features appeal to buyers frustrated by low housing inventory.
3. Key Buyer Trends
• Relocation: The Bay Area continues to be a significant source of buyers relocating to Northern California. Tehama County, with its lower median prices and open spaces, has become a hot spot for these urban-to-rural transitions.
• Investment Appeal: Investors are increasingly eyeing Shasta and Tehama Counties for land acquisitions, anticipating future development and market appreciation. Properties zoned for multiple uses or offering subdivision potential are particularly appealing.
4. Interest Rates and Financing
• While mortgage rates remain higher than pre-pandemic levels, they have slightly stabilized, encouraging buyers to re-enter the market. Owner-financed land deals have become a popular option, offering flexibility and lower upfront costs for buyers looking to build or invest.
5. Future Outlook for 2025
• Experts predict steady growth in both counties, with rural properties and land sales leading the way. Shasta County’s proximity to outdoor recreation and amenities in Redding makes it a continued favorite, while Tehama County’s affordability ensures a strong flow of interest from first-time buyers and retirees.