Redding, CA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Redding, CA, Federal Housing Finance Agency (FHFA) House Price Index (HPI) is a weighted, repeat-sales index that measures average price changes in repeat sales or refinancings on the same properties. The index covers single-family homes and condominiums. The FHFA HPI is a broad measure of home prices in the United States and is published monthly.

In December 2020, the FHFA HPI for Redding was 275.6, up 0.2% from November and up 11.1% from December 2019. On a year-over-year basis, home prices in Redding have increased for 58 consecutive months.

The FHFA HPI is based on data from Freddie Mac's Primary Mortgage Market Survey® (PMMS®), which covers approximately 75 percent of U.S. mortgage transactions each month through its survey of conventional conforming loan applications submitted by mortgage lenders to Freddie Mac for purchase or insurance purposes."

According to the most recent PMMS report released by Freddie Mac, the 30-year fixed-rate mortgage averaged 3.73 percent for the week ending February 4, 2021, down from 3.84 percent last week and 4.46 percent a year ago." This decrease in mortgage rates over the past year has helped to drive home prices higher as more buyers are able to afford a home at today's prices with lower interest rates."

In addition to lower mortgage rates, another factor driving up home prices is the lack of available homes for sale relative to buyer demand." According to Realtor dot com®, there were 1 million fewer homes available for sale in January 2021 than there were a year ago – a 14 percent drop." This decrease in inventory combined with an increase in buyer demand has resulted in bidding wars and rising home prices across much of the country."

Redding is no exception – according to Zillow®, the median list price of homes currently listed in Redding is $419,900 while the median price of homes that have sold is $408,100." This represents an increase of nearly 10 percent over last year's median sale price of $371,200." With limited inventory and strong buyer demand leading to rising prices, now may be a good time to consider selling your home if you've been thinking about it."