Chico CA Real Estate Market Stats
Chico Sellers
Chico Is A Seller’s Market!
January 1st, 2013 categories: Chico CA Real Estate Market Stats, Chico Sellers
Historically low interest rates (3-4%) + low inventory = A SELLER’S MARKET.
As of this morning, there are only 153 active single family homes in Chico. Only 34 of those are under $200,000, which is a highly sought after price range. 79 homes sold in December 2012. 22 of those Chico homes sold for under $200k. We only have about 6 weeks of inventory available for buyers, which is considered LOW.
If you’ve been on the fence about putting your property on the market, now might finally be the right time. Lack of inventory in some price ranges is creating multiple offer scenarios on many properties. We’re finding it difficult to get some of our buyers into homes due to the competition with cash offers.
Considering selling? Call Sandi Bauman, the Top Chico Listing Agent for guidance. In 2011, Sandi Bauman and her Team sold more than 170 properties. The average Chico Realtor sold 5. It would be our pleasure and privilege to discuss your unique property. Call 530-864-5407 or email [email protected].
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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!!
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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 Chico CA REO, residential, relocation, investment & ag real estate.
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My perspective: The Chico, CA Real Estate Market is not THAT bad!
October 7th, 2007 categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News, Chico Sellers
Call me a hopeless optimist if you like, but I don’t think the Chico CA real estate market is half as bad as everyone makes it out to be!
The power that the media has on people’s perception of reality is both amazing and frightening.Considering the facts stated below, can anyone really argue that the Chico CA real estate market is all that horrible?
These numbers represent all class of property including single family homes, residential income, commercial, manufactured homes, vacant land, ranches and farms, year to date as reported by the Sierra North Valley MLS.
Year Listed Sold % Listed Sold Avg List Price Avg Sold Price List/Sold DOM
2007 6498 2067 31.81% $303,327 $289,171 95.33% 92
2006 7401 2430 32.83% $302,084 $290,848 96.28% 73
I’m thinking the numbers look pretty gosh darn good! My biggest caution to sellers would be to expect an extra 20 days on the market for a reasonably priced house to sell.
To sum it up, approximately 40 less properties per month have sold in 2007 than in 2006. Nearly 400 Chico Realtors have closed at least one transaction this year!
Compared to the statistics that are being posted for other regions in the United States, I really think that Chico CA has faired very well. Take Ponciana, FL for instance. Only 1.77% of their total inventory is actually selling! It appears that Chico CA property is a safer investment than you might find somewhere else.
Am I really the only one seeing this glass half full?
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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