We’re officially closing out the first quarter of 2026 and stepping into spring—traditionally one of the busiest times of the year for real estate. While the market has remained relatively healthy overall, we’re starting to see some shifts that could shape the months ahead.

In this month’s discussion, Ben Larson of Larson Home Loans and Annalise von Borstel of Hyperion Humboldt Realty break down what’s happening with interest rates, buyer activity, and our local Humboldt market.

Interest Rates: A Shift in Momentum

Interest rates gave us a bit of a rollercoaster over the past couple of months.

• February Trends:
  • Started at 6.11%
  • Dropped to a low of 5.98% (a 3-year low)
  • Overall: steady downward trend
• March Trends:
  • Started around 6.00%
  • Peaked at 6.38% toward the end of the month
  • Reversed the pattern we’ve seen for most of the past year
• Early April Update:
  • Rates have climbed to approximately 6.57%

This recent increase is already impacting borrower behavior—especially in the refinance market.

Buyer Activity: Still Strong Despite Rates

Even with rising rates, purchase demand remains solid.

• Refinances:
  Extremely rate-sensitive and have dropped off significantly
• Purchase Applications:
  Still strong and above last year’s levels

This tells us something important: Buyers are adjusting to the “new normal” of higher rates.

Strategies Buyers Are Using Right Now

With rates elevated, lenders and buyers are getting more creative:

• Temporary Buydowns (1–2 years)
  Often negotiated with seller credits
• Permanent Rate Buydowns
  Paying points upfront for long-term savings
• Adjustable-Rate Mortgages (ARMs)
  Fixed for 3, 5, or 7 years with lower initial rates
• Creative Financing Options
  Including blended loans and alternative structures

Bottom line: Having a knowledgeable lender matters more than ever.

It’s important to remember: March data reflects contracts written in January and February.

So while things look steady now, April and May will better reflect current rate impacts.

Key Highlights

• Total Sales: Up slightly year-over-year
• Year-to-Date Sales: Up nearly 9%
• Pending Sales: Up about 9.5%

Inventory & Market Conditions

• Absorption Rate:
  • 4.11 months (March)
  • Back in seller’s market territory
• Days on Market:
  • Down to 37 days (from 50 last year)
• Sold-to-List Price Ratio:
  • Averaging around 93%

Overall: Still a healthy, active market, especially heading into spring.

Total Humboldt Sales: 78 homes (+22% from February)
Median Price: $408,000 (-3% from February)

Eureka

• $408,000 median sold price
• 63 sales year-to-date (slightly down from last year)
• Median price up ~2.75%
• 33.3% market share
• Strong demand despite slight dip in sales volume

Fortuna

• $403,000 median sold price
• Sales up 11.5%
• Sold-to-list ratio near 98%
• 11.5% market share
• Prices slightly fluctuating but stable overall

McKinleyville

• $492,500 median sold price
• Strong seller’s market
• Absorption rate under 2 months
• 5.1% market share
• Homes moving quickly (as low as 7 days on market)

Arcata

• $500,000 median sold price
• Year-to-date:
  • Sales up 14%
  • Median price down ~2%
• 5.1% market share
• Lower sold-to-list ratio (~90%)

As we celebrate the one-year anniversary of the Redwood Real Estate Report, we’re grateful to everyone who has been following along and staying informed about the Humboldt County housing market.

Each episode is designed to provide clear, local insight into what’s happening in real estate so buyers, sellers, and investors can make confident decisions.

If you have questions about the market, home values, or financing options, reach out to the team at Hyperion Humboldt Realty or Larson Home Loans.

Stay tuned for next month’s update as we continue tracking the trends shaping the Humboldt County real estate market.

While Q1 was strong overall, we’re keeping a close eye on:

• Rising interest rates
• Increased cost of living pressures (like gas prices)
• How current buyer demand translates into closed sales in Q2

Expect April and May data to show clearer signs of where the market is heading.

Catch all of the episodes on  YouTube , Apple Podcast, or Spotify. Each broadcast includes detailed commentary, market snapshots, and neighborhood features.

For mortgage support, home valuations, or to schedule a free consultation, contact Larson Home Loans or a local agent through Hyperion Humboldt Realty. We’re here to help you make informed moves.