Chico CA Real Estate Market Stats
Chico Real Estate Market Report April 18, 2008
April 18th, 2008 categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
by Mike Wiegert
While the rest of the world continues to shroud itself in a cloak of doom and gloom, our Chico real estate market appears ready, able and willing to go to the 15th round.
All type of media ranging from the daily newspaper to “expert” fiscal commentaries on various internet news services to regional and local blog sites are all assuming the role of a sort of economic Edgar Allen Poe. I can’t speak for everyone, but I’m not just tired. I’m exhausted, wiped out and drained by all the tales of woe that doomsayers consider newsworthy.
It’s time to stop assuming that just because a home down the street went through a foreclosure that this is the end of Chico real estate as we know it. As pointed out in previous “moments”, foreclosure sales nationwide only amount to seven tenths of one percent of all the households in our country. Due to the reseting of adjustable rate loans and a subsequent inability to pay by the borrowers on these loans, the rate of foreclosures is certain to rise. But with all the government and banking industry sponsored programs to assist these troubled homeowners, any foreclosure rates increases are assured to be negligible.
Let’s look at some hard facts derived from statistical reporting by our Chico Association of Realtors. Historically, the first quarter of every year is a “seasonal” slow quarter as many sellers and buyers anticipate the brisk activity of the spring and summer housing markets. The first quarter of 2006 statistics revealed 178 residential sales in all of the Chico sectors. The average market sold price for these sales was $361,166 giving us a total volume of sales of $64,287,548. The 2006 first quarter is considered to be one of the most active quarters in local real estate history. The first quarter of 2008 showed us 162 residential sales with an average Chico sales price of $336,926. The total volume of sales for this quarter was $54,582,012.
So let’s crunch some numbers and interpret this data. Using these hard numbers, sales in the first quarter of this year lagged fifteen percent behind the first quarter two years ago. When comparing average sales prices of these quarters we see that the average sales price of this year’s quarter is down seven percent from the average sales price of the 2006 first quarter.
Ask ten economists how much prices have dropped and you’ll probably get eleven answers but these local quarterly statistics are as good an indicator of pricing as any.
So it’s time for all you woe-begone town criers to blow your noses, put down your Kleenex’s and stop using sensationally negative national news to harm our virile local economy. For years people have asked me, “Mike, how does your town survive with little or no industry.” My answer, “Inexplicably, it does”. Over thirty years ago when I started in the real estate business the nay-sayers were out there. I was told this town would never survive. But it has and it will continue to not only survive, but thrive. I’ve seen many down cycles locally, but our area like many, always pulls out of it and experiences safe and positive growth.
Before we know it, these problems will be a memory and we will remember just how great it is to live in a place like Chico, CA.
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The Chico Real Estate Market: Turning the Corner?
April 13th, 2008 categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
by Mike Wiegert
There’s a lot of talk in the news these days about the end of the housing slump, home prices stabilizing and increases in real estate sales activity in the West. Last week while speaking at a banking conference in Tokyo, former Federal Reserve Chief and guru Alan Greenspan announced that he expects an end to the drop of U.S. home prices by early in 2009. Greenspan added that as housing inventory is reduced, “it is very likely that home prices will stabilize well before that.”
In nearby Sacramento county, an area among the highest in U.S. foreclosures, a recent survey of 1200 residents indicated that 63 percent believe that now is a good time to buy a home. The study conducted by Sacramento State University’s Institute for Social Research fine tunes the data by stating that 47 percent believe that now is the right time to buy and 16 percent believe that between now and six months will be the best time to buy. Additional, less than comforting information, is that 58 percent said that they have concerns that their income will be insufficient to cover their expenses.
Outskirt communities of San Diego County such as Oceanside, Escondido, Valley Center and Ramona are experiencing a burst of new activity as buyers and investors take advantage of significantly lowered home prices. Brian Crisp, a San Diego broker has stated in the North County Times that investors are pouncing on deals in high numbers. “Mostly investors will look to fix up a home and sell it for a profit. But some homes are so deeply discounted that investors can rent them for a profit” says Crisp. “My business had doubled just in this month. And I’m seeing some cash-flow potential with a lot of deals lately,” he said.
Oceanside Realtor, Kurt Kinsey recently listed a home in Oceanside for almost 40 percent below it’s 2005 sales price. Kinsey was flooded with 31 offers from interested buyers. “I’ve done this for 21 years and even in a hot market, I think the most I had was nine (offers),” he said. “I think we might have turned the corner as far as falling prices.” Kinsey continues by saying that not all deals are snatched up by investors. Of the 31 offers on the home listed at $340,000, all but one were from buyers actually intending to live in the home.
The National Association of Realtors Pending Home Sales Index which measures pending sales contracts and is a barometer of future home sales activity saw a rise of 2.1 percent in the west region for the month of February.
This region, which includes California was expected to drop by .7 percent according to economists and analysts.
A survey of Chico real estate brokers indicate a flurry of calls and inquiries about listings particularly in the sub-median price ranges. These brokers tell me that they are seeing an emergence of not only investors but owner-occupant buyers as well. One southeast Chico neighborhood home, recently listed for $199,900, was deluged with eight offers. In my own office, Sandi Bauman’s two college area duplexes received two competing offers within hours of the sign going up. As we now experience new activity in the sub-median and median prices it won’t be long until the price ranges above these levels also gain sales activity as once-be sellers become buyers seeking to replace their modest homes with more suitable environments for their growing families.
With interest rates continuing to hold in the mid to high fives, this in a fantastic time to buy real estate in Chico, CA!
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Chico CA Real Estate Market Report for Week Ending 2/18/2008
February 20th, 2008 categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
Chico real estate market data.
I’ve always found real estate market reports to be really dry reading… but many of you potential Chico buyers and sellers have been coming to my blog looking for this type of information, so here you go!
The following represents the market data including Chico homes sold, listed, price changes, and pendings for single family homes only. Chico areas covered are 1A to 1F, as provided by the Sierra North Valley MLS.
Looking for other Chico real estate market data? Tell me what you need!
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Chico CA Real Estate Listings SOLD! Week Ending 2/16/08
February 18th, 2008 categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
Chico Residential Listings SOLD!
$165,000 1401 SANTA CLARA AVE 1161 sqft
$220,000 330 W 14TH STREET 1300 sqft
$231,500 689 E 18TH STREET 2000 sqft
$285,000 1196 #B FILBERT AVE 1173 sqft
$285,000 1300 CHESTNUT ST 1280 sqft
$275,000 1391 CROUCH AVE 1967 sqft
$269,000 1389 KERI LANE 1592 sqft
$280,000 735 PINE ST 2020 sqft Duplex
$285,000 667 E 8TH STREET 1261 sqft
$255,000 1558 FILBERT AVE 1658 sqft
$275,000 1300 CHESTNUT ST 1280 sqft
$295,000 5 TORINO CT 1810 sqft
$390,000 1520 LOCUST ST 4 plex
$545,000 638 STILSON CANYON RD 2402 sqft
$775,000 488 E 3RD STREET 4500 sqft
$900,000 1328 ESPLANADE 5-15 units
Want to see your Chico property listed up there in the “SOLD!” section?
Contact me for a no obligation, Comparative Market Analysis to find out what your house may sell for. Ask me about my internet marketing plan!
My direct number: 530-864-5407. Email: [email protected].
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Chico Real Estate: What happened to prices in 2007?
January 22nd, 2008 categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
Chico CA Real Estate Prices History Comparison 2005-2007
Misery loves company, or so the saying goes. It’s the only explanation for the dismal outlook many folks have when discussing the Chico real estate market. While it’s true that prices have come down from the record highs of 2005 and 2006, it’s safe to say that we fared pretty well compared to many of our California neighbors. If Chico Realtors have said it once, we’ve said it a million times: REAL ESTATE IS LOCAL!
The chart below compares average asking prices and sold prices for single family, residential properties in the urban Chico area.
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Chico Listings Sold Week Ending 1/19/2008
January 21st, 2008 categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
Chico Residential Listings SOLD!
$450,000 1635 LAZY TRAIL DR 2330 sqft
$210,000 220 HENSHAW AVE 1110 sqft
$452,000 35 WESTGROVE CT 2307 sqft
$350,000 2657 LAKEWEST DR 2087 sqft
$340,000 7 REDEEMERS LOOP 1881 sqft
$332,000 429 CHESTNUT ROSE L 1705 sqft
$305,000 1812 HERON LN 1731 sqft
$413,000 925 DIAS DR 2240 sqft
| Discussion: 2 Comments »
Chico CA Real Estate Market Report for Week Ending 1/19/2008
January 20th, 2008 categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
Chico real estate market data.
I’ve always found real estate market reports to be really dry reading… but many of you potential Chico buyers and sellers have been coming to my blog looking for this type of information, so here you go!
The following represents the market data for single family homes only. Chico areas covered are 1A to 1F, as provided by the Sierra North Valley MLS.
| Discussion: 3 Comments »
What Am I Thankful For…
November 21st, 2007 categories: Chico Buyers, Chico CA Real Estate Market Stats, Chico CA Real Estate News, My Opinion on Things
by guest writer Mike Wiegert, broker, Chico Homes
At this time of holiday cheer and good will towards men, I really feel the need to express my gratitude and thanks for the many blessings in my life.
First there is the love of a healthy family and friends. Next, I’m grateful for my own personal health and well being. I’m thankful that none of my sons are involved in an unnecessary war in a desperate land thousand of miles from home. I’m grateful that I live in a community like Chico, CA where a day never goes by without a hearty greeting from someone I’ve haven’t seen for a while. And I can’t forget to mention how thankful I am to be a Realtor in these times of prosperity and exceptional market conditions.
WHAT? WHOA! STOP! HALT! SCREECH!
What did that idiot just say? Is that the same market that we’ve heard about with desperate sales situations and real estate salespeople jumping off bridges or scurrying to find other skilled occupations. (Would you like fries with that?) Yes, that’s the market I’m talking about.
It’s all a matter of perspective.
We’ve all read horror stories sensationalized by our newspapers nationwide about the failing real estate market. We heard about how the bottom is falling out, and how families have lost tens and hundreds of thousands of dollars in equity in their homes. We know about foreclosures and short sales being on the rise.
Did you see, however, an article that stated that by Thanksgiving week, members of the Chico Multiple Listing Service had sold and closed $825,000,000 in real estate since January ONE?
That’s EIGHT HUNDRED AND A QUARTER MILLION, PEOPLE!
Gosh, that really sounds terrible to me. Did you also read that the highest sales volume in Chico MLS history was the record year of 2005 at a whopping $1,250,000,000? At the current rate, Chico CA Realtors are projected to sell $927,000,000 in Chico CA real estate or about 74 percent of the volume of sales of that highest, greatest real estate sales year of all time! Year 2007 is shaping up to be the third largest volume of sales in Chico Multiple Listing Service history.
I’m thankful that mortgage rates are staying at historical lows, often in the high fives to low sixes. At risk of sounding like your Grandpa, I remember selling (or trying to sell) real estate in Chico, CA in the eighties when interest rates were in the 18 to 20
percent range. The point is that interest rates are incredibly low, and it’s a fantastic time to buy. If you read my article last week about short sales, it was a shout out to all the buyers out there. We’re talkin’ OPPORTUNITIES, PEOPLE!
I’ll leave you with this thought: you can read all the sensational negative news available, but remember that our local market is strong, and it’s a great time to be involved.
Have you every heard anyone say, “I wish I hadn’t bought so much Chico CA real estate in my lifetime.” I didn’t think so. How about, “I wish I had bought MORE real estate!”
I rest my case.
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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Chico, CA Real Estate Market Report October 2007
November 3rd, 2007 categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
Statistics for: Single Family Detached, Condo, Duplex, Mobile On Land
Date Range=10/2007-10/2007
Current Active Avg List Price Avg DOM
464 $404,743 105
Listed Sold Pct Sold Avg List Price Sold Avg Price Sold
123 53 43% $368,148 $349,222
Sale Price/List Price Ratio Avg DOM Sold Pct Expired
94.86% 79 34%
Like what you’re reading?
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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Absorption Rate and Pricing a Chico Property
October 7th, 2007 categories: Chico CA Real Estate Market Stats, Chico Sellers
The term “absorption rate” is one you may hear a Realtor use when discussing pricing Chico CA real estate property.
Columnist Jerry Rossi explained it beautifully in the June 2006 edition of Realty Times. The application of his example allows us to explore, based on fact, the liklihood of selling a Chico, CA property at the price you are considering listing it at.Jerry’s example!An investor wants to sell his 4-plex for $300,000. After doing a Comparative Market Analysis on the property, a competent Realtor knows that his 4-plex is probably only worth $275,000. To help him understand why he should NOT list it $25,000 over value, you apply the formula to figure out the absorption rate.
In simple terms:
- Take the number of 4 plexes sold in the past 12 months at $300,000. (let’s say 5 sold)
- Divide this number by 12 to get the absorption rate. (5 divided by 12 = .42)
- Find the number of 4 plexes available at $300,000. (10 available)
- Divide this number by the absorption rate. (10 divided by .42 = 23.80)
It will take 23.80 months (yikes!) for the market to absorb the 4 plexes currently for sale at $300,000.
It would take 7.5 months on the other hand, if the investor was to list at your suggested price of $275,000… and there were 5 4-plexes available at $275,000.
If the difference in the number of months doesn’t help in the understanding of the dangers of overpricing, try considering the amount of money the seller will pay OUT during that extra 16.3 months the property could sit on the market.
If the seller is paying $1900 per month on a mortgage, their SAVINGS could be $30,970 in payments.
Ultimately, they will save $5970 by pricing their 4 plex $25,000 LESS!!
Like what you’re reading?
Click here to SUBSCRIBE to Chico CA Real Estate Blog and MLS Search
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in Chico CA REO, residential, relocation, investment & ag real estate.
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