Shannon Karlstrom

40 Single Family Homes sold in Chico during the short month of February

• Average Sold Price: $271,589, down 8% from January
• Median Sold Price: $253,000, down 3% from January
• Average Days on Market: 67 days, selling 13% faster than previous month
• Homes sold, on average, for more than 93% of list price, up roughly 5% from January

Currently there are 377 single family homes for sale in Chico, virtually the same as it was a month ago. So, inventory seems to be holding.

• Average list price of active homes: $428,174, down 3% from January
• Median list price of active homes: $355,000, down 2% from January
• Average Days on Market: 127, virtually the same as the previous month

But, here's where things start to get really interesting...

86 Homes are currently Pending sale, up 8% from January.

• Average list price of Pending homes: $307,185, up 3% from January
• Median list price of Pending homes: $284,000, up 5% from January
• Average Days on Market: 101, up 4 days from the previous month

Could it be that these Pending home sales figures indicate the bottom of the housing decline in Chico? Well, I wish I could say I knew for certain. But, I don't. However, I have been sensing my toes tickling the bottom of the pond and I think that it will be awfully interesting and telling when we take a look at the March figures. So, without making any overreaching predictions, if I'm right on this, you can say you heard it first at, ChicoRealEstateVoice.com. If I'm wrong... well, you can let me know that too!

Every once in a while, I see something that really gets under my skin, pisses me off, and reminds me that there are some real idiots out there.

This morning, on my way to the office, I passed by my neighbors car parked in front of their home and was disgusted to see the vandalism shown in the picture. It bothered me so much I left the office to return to the scene of the crime to take a couple of pictures and, if the opportunity arose, share my disdain for the cowardly act with our good neighbor.

I ended up taking the pictures and chatting with another neighbor about the ridiculous things some people do and the need to watch over each other's homes' and property.

Although, my neighbor (the recipient of this malicious act) is a person of color, I suspect that he was targeted, not because of the color of his skin, but for the Obama bumper sticker on his car. This, of course, is total speculation and I am no investigator. But, what you don't see clearly in this picture, is the black spray paint covering the taillights and the Obama sticker.

Either way though, no matter what the motive, it is simple minded and ignorant in nature. And, most definately cowardly. What can I say? I could go on and on about this. But, the simple reality is that there are just lousy people out there. It is just really sad that this happened to these lovely people and I hope that whatever their feelings are regarding this senseless act, they stay strong and positive knowing that they have friends and neighbors who support them and condemn what those jerks did. This shouldn't be happening anywhere, especially in my Chico neighborhood! Tell me what you think.

The new year... or maybe better, the end of an old year, gives us an opportunity to take a look back at the Chico housing market, compare some past housing numbers and try to spot any trends that may help us see where we could be headed in the future. So, let's take a look...

*Note: descrepencies shown here from previous figures due to adjustments and late sales reports through Sierra North Valley MLS. Information deemed to be relaible, but not guanteed.

Analysis: On the whole, median Chico home sale prices ended the year 8% lower than they started. More homes sold during the 4th Quarter than did during the 1st Quarter, with the most reported sales occuring during the middle of the year.

Median REO prices continued to decline throughout the year, ending down 8% from the beginning of the year. Median Short Sale sold prices ended 10% higher with a large bump during the second quarter.

Mortgage Rates are Fantastic!

Rates are near an all time low, right around 5% (less on some days). While qualifying guidlines have greatly tightened, those with good credit, income, and some cash to invest are finding fantastic deals. FHA continues to fill the gap for Buyers with little down payment. And, programs, such as CalPers, are assisting Buyers who qualify.

So, Is There Opportunity for Real Estate Investment?

Absolutely! It seems that I am hearing it more and more from people lately. They say things like, "I wish I had some extra money to invest in real estate right now". "There are such great deals out there". And, well, for the most part, they are right. But, that doesn't mean that every house for sale is a good deal. Just because homes in general are a lot less expensive than they were when they were priced at their peak, doesn't automatically mean that they are a great deal. Many of them were just over priced to begin with. But, they are getting much closer to being where they should be and in some cases already are. So, yes. There are opportunities for Chico real estate investors and home buyers in 2009! Keep up to date at, www.ChicoRealEstateVoice.com.

What the Chico Housing market looks like NOW

There are currently 363 Single Family Homes for sale in Chico. 21 of those are Bank Owned (REO's) and 54 are Short Sales. 67 Homes are Pending, accounting for an 18% absorption rate.

Housing inventory tightens up

On September 30, 2008, I reported 463 active homes on the market, 23 of those were REO's and 48 Short Sales. That is an overall reduction in inventory of 100 homes, while the number of RE0 and Short Sales didn't change all that much. So, total inventory decreased by 22%. However, because of the reduction in all available homes for sale, the percentage of REO and Short Sales available on the market increased 7%, from 15% on September 30th.

Does this tightening indicate a change in the market? Maybe. Maybe not. It is typical for inventory to tighten up a bit during the Holiday Season as "would-be" home seller's focus on other things and plan for sales during the Spring. However, that is a substantial reduction in available homes that may not be fully explained by a normal seasonal shift. Perhaps the more important indicator would be actual sale trends for the period.

Look for my next post and see what the numbers tell us about activity in 2008...

The strangest thing happened to me the other day...

One of the first of many "catch up" things I had to do upon return from my 10 day vacation to Hawaii (more on that later) was to retrieve my mail that was being held for me at the main post office in downtown Chico. Now, you have to understand that my list was long. Ten days is a long time to get caught up on. So, when I approached the steps of the post office and noticed a small group of... well, folks with no more important business than to gather on the steps of the post office on a Friday morning... looking as though they were waiting for they next passerby to hit up for money and knowing that that person was going to be me, my defenses started to raise... just a bit. I mean, I was in a hurry and I just didn't have the time, patience, and probably not, the generocity to share any extra change in my pocket.

Have you ever felt small and hopeful at the same time?

Well, here's where it gets strange. As my deliberate, hurried steps passed just a few feet from the group, the one guy who was seated, caught my attention with a "Hey" and something about change. As I turned just slightly to make my "Sorry Brother" dismissal of his presumptive request, he reached out and handed me a Quarter. He handed me a quarter! As I reached out to accept the gift he repeated, "change for change". I smiled, said "thanks", and checked to see if it was a state that I needed for my collection and proceeded into the post office to do my business.

It just gets better...

So, with my stack of 10 days worth of mail under my arm, I headed towards the door. As I approached, I paused for a moment to let an elderly woman enter. As I began to step aside for her, she reached out with a smile and handed me a quarter. It was a quarter that she had just been given from the gentleman on the steps with the instructions to pass it on. And, she did. Now, I had made fifty cents in under five minutes... not bad for a Realtor in a down market. As I checked to see what state the quarter was (turned out to be the same one I had just been given) I went over to the generous dude on the steps and showed him a picture of Mr. Change himself, Barack Obama, on the cover of my new issue of The Week I had just been handed from the nice lady at the post office and said something about change must be in the air, or something like that.

Who's next?

read the rest at, ChicoRealEstateVoice.com