Published October 16, 2026 in Market Update

Cottonwood is having a stronger year, even with more homes for sale

By Katie Luther

Real estate, Shasta County

Here is the number that matters most for Cottonwood owners right now. The Real Estate Data Aggregator counted 56 homes sold in ZIP 96022 in the three months ending August 31, 2026. That is up 40% from the same months a year before. More homes for sale did not slow buyers down.

At the same time, Realtor.com reported that active listings topped 1.16 million homes nationally in September 2026. Nationally, more supply has put sellers under pressure. Cottonwood moved in a different direction. The Real Estate Data Aggregator shows inventory in 96022 rose 25.4%, yet sales and prices both went up.

Price and pace in Cottonwood

The Real Estate Data Aggregator shows the median sale price in 96022 reached $392,000, up 12% from the same period in 2025. Homes sold for 98.3% of their list price on average. That held up even as more choices came to market.

Homes took a median of 46 days to sell. That is 5 days shorter than a year before. Not every home moved quickly, but the direction is encouraging.

Pending sales point forward

The Real Estate Data Aggregator counted 58 pending sales in 96022 during the same period. That is up 34.9% from a year before. Pending sales are homes under contract but not yet closed. A rising pending count usually means closed sales will follow.

The wider picture: rates are a real headwind

KRCR News reported mortgage rates jumped above 7.5% in early October 2026, a three-year high. Realtor.com reported rates surged above 7% for the first time since January 2025. Higher rates slow buyers everywhere. Cottonwood's numbers cover the three months ending August 31, before that latest jump. Keep that in mind.

Nationally, Realtor.com reported 20.8% of listings took price cuts in September 2026, the highest share since October 2022. That pressure has not shown up the same way in Cottonwood's recent numbers, but it is worth watching as rates climb.

Why Cottonwood reads differently than Redding or Anderson

Cottonwood is not Redding, and it is not Anderson. It sits at the south end of Shasta County along I-5, near the Tehama County line. Ranch land, horse property and acreage draw a specific buyer. That buyer is not just shopping by square footage. Water, usable land, a shop and access all drive value here.

More inventory in a place like this does not automatically mean weaker demand. It can mean more buyers finally have something to look at. The 40% rise in sales supports that read.

How Cottonwood compares with the rest of the county

Cottonwood's 40% sales jump was the largest year-over-year gain of any ZIP in this data set. Palo Cedro (96073) was close at 37.5%, and north Redding (96003) rose 28.8%. The Federal Housing Finance Agency reported U.S. house prices rose 2.6% from July 2025 to July 2026. Cottonwood's 12% price gain ran well ahead of that national pace.

One road can read very differently

These are ZIP code numbers. A property on one road in Cottonwood can tell a different story than the ZIP as a whole. Acreage, water source, outbuildings and fire insurance access all shift the picture. The ZIP average is a starting point, not a final answer.