The 2016 Statistics are in, and it shouldn’t come as a surprise that for the 5th consecutive year, homes have appreciated. We have a shortage of inventory and a result, homes hitting the market continue to sell in a matter of days, often with multiple offers. The last home that I listed in 2016 received six offers and sold $15,000 over asking price in just six days on the market! The pent up buyer demand, great interest rates, and shortage of housing continue to bid up home prices. The median home price in Chico rose 7.5% to $305,000 for the 12 months ended December 2016. Paradise and Orland also saw a rise in home prices to $219,500 (a 6.6% increase) and $225,000 (a 9.8% increase), respectively.
If you are waiting for Spring to sell, that might not be the best plan. Strike while the iron is hot! As I am writing this, there are only 133 homes available in Chico; any only 38 of them are priced below $300K. In other words, pretty slim pickings!
The average days on the market dropped by as much as 25% in our local area. The median number of days on the market for homes listed in Chico was only 22 days during 2016. Another key factor indicating that we are still FIRMLY in a Seller’s market is the Month’s Supply of Inventory (MSI). MSI is the number of months it will take for all active listings (inventory) to sell if no new listings hit the market. An MSI of about 6 months indicates a normal, balanced housing market. In 2014 Chico hovered at 3 to 4 Month’s Supply. That supply dropped steadily during 2015 to only 2.8 MSI in December of 2015. The average MSI for Chico in 2016 was only 2.2 months!
If you are thinking of buying or selling, don’t wait until Spring. Let’s get together and talk about your specific circumstances and Real Estate goals. It’s a GREAT time to sell and with interest rates at only 4%, buying isn’t such a bad idea either!