Shannon Karlstrom

What the Chico, CA housing market looks like NOW:

Currently, there are 463 Active single family homes for sale in Chico. 23 of those are REO's (Real Estate Owned-Bank owned following foreclosure), 48 are Short Sales.

What the 2nd Quarter looked like:

242 homes sold during Q2 of 2008. Of those, 38 were REO's and 10 were short sales.

At a Glance:

There are currently more than twice the number Short Sales available on the market than there are REO's. However, nearly 4 times as many REO's sold than Short Sales during the 2nd quarter of this year. REO's and Short Sales accounted for 20% of single family home sales activity during that time. Currently, REO's and Short Sales account for 15% of all active single family homes for sale in Chico.

What does it mean and Where is the Value?

Plainly, REO's sell a lot faster than Short Sales. So, the "Short" in Short Sale, obviously does not mean that they sell fast. And, if you have ever been involved with one of these sales, either as a Buyer, Seller, or agent, I'm sure that you would agree. They can be difficult, frustrating, and ultimately, fruitless. Whereas REO's, although not without their own complexities, seem simple in comparison. And, they are.

But, which one results in the greatest value for the dollar? Well, let's break down the numbers for the 2nd quarter. At, Chico Real Estate Voice, I delve into the numbers a bit further.

Today in Chico, CA, there are 446 active single family homes available on the market as indicated in the Sierra North Valley MLS. 92 homes are currently pending sale, representing a 21% absorption rate.

During the month of August:

• 68 single family homes were reported sold,
• Average sale price, $302,339,
• Median sale price, $279,450,
• Average DOM (Days on Market), 74
• Sold homes sold for an average of 92% of their list price.

Compared to the activity during Q2 of 2008:

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Since the previous Market Report 5/12/2008:

27 Single Family Homes have sold in the greater Chico, CA area with an average sales price of, $306,052 and a median sales price of, $285,000. Average days on market of those sold was 53. The most active market with 4 homes sold, was the $280,000 to $284,999 price range.

These figures reflect a 21% decrease in sales activity from the previous 2 week period, a 9% decrease in average sale price and 3% decrease in median sales price. Average days on market improved substantially, from 79 to 53, representing a 33% reduction in days on market for homes sold.

Currently:

440 Single Family Homes are for sale (including those reported as contingent and temporarily off market). 121 Homes are Pending sale. Average days on market of available homes is, 111. The ratio of Pending homes to Active homes is down 3% to 25%.

Source: Sierra North Valley MLS and Chico Real Estate Voice.

Snapshot Comparison: Average Sold Prices for Chico, CA

1st Quarter 2008:

• 132 Single Family Homes Sold
• Average price of $340,955
• Median price of $292,000
• Average Days on Market, 91

1st Quarter 2007:

• 207 Single Family Homes Sold
• Average price of $366,835
• Median price of $330,500
• Average Days on Market, 92

1st Quarter 2006:

• 187 Single Family Homes Sold
• Average price of $374,134
• Median price of $339,000
• Average Days on Market, 69

Analysis:

The Chico, CA real estate market has experienced continued home price declines in home values as reported during the 1st quarter of the past three years.

• 7% reduction in price from 1st Qtr. 2007 to 1st Qtr. 2008
• 2% reduction in price from 1st Qtr. 2006 to 1st Qtr. 2007

That's a total of only 9% reduction in average home values comparing 1st Qtr. 2006 to 1st Qtr. 2008, indicating a healthy market correction, but certainly not a collapse in Chico, CA home values. Look for further analysis here as I will compare our local figures with others around the region and the nation.

Here in Chico, California, we are lucky to have so many great resources for fun and leisure. One of the best resources to learn or to develop a new skill or hobie, is the Chico Area Recreation and Parks District (C.A.R.D).

Their motto is, “Helping People Play”. And, that is just what they do.

This week will be the last of a 3 week (6 session) class for learning the basics of tennis I have enjoyed with my wife, mother-in-law, and about 10 other folks. We have really enjoyed the classes taught by, patient and entertaining, tennis instructor, Jerry Brayton.

But, the best part could very well be the free use of the ball machine that cranks out ball after ball.

Classes meet Tuesdays and Thursdays, 6:30 to about 7:30pm at the Community Park Tennis Courts… check their website for future classes.

In addition to tennis, CARD offers many other activities and events for people of all ages and interests. Things like; soccer, dance, kung fu, computer classes, Movies in the Park, various trips and tours, and so much more…

Read More... ChicoRealEstateVoice.com