The end of another quarter. . .as a recovering C.P.A., my life is no longer measured by quarterly closes, but old habits die hard and I am compelled at the end of every quarter to run numbers and analyze the trends The data is in for 3rd quarter, and it is safe to say that the market is shifting. We have had 6 years of double (or nearly) digit price appreciation and all time inventory lows, creating a major seller’s market. While median prices have continued to rise, albeit slightly more modestly, inventory levels and days on market are inching their way up. With inventory swelling, we are seeing an unprecedented number of price reductions. This isn’t to say that it’s a bad time to sell. . the buyers are still out there. It just means that sellers can’t price their home 5% above the last comp in the neighborhood and expect to have a bidding war. The market is flattening out. So, if you have been waiting to sell, wanting to ride the wave up, this may just be the time. Likewise, for those of you waiting to buy, with more inventory available, there will be far less competition and a lot more to choose from.
The median home price in Chico rose 6.9% to $337,000 for the 12 months ended September 30, 2018. The average days on the market increased slightly to 42 days, compared to 41 days for the 12 months ended September 30,2017. The average number of active listings was 301 for the 12 months ended September 30, 2018, compared to 278 days the prior year. Average price per square foot is up 6.4% to $216 a foot.
The story in surrounding communities like Paradise and Orland is a bit different. For those of you in the Paradise market, median price rose 4.1% to $255,000, while price per square foot rose 8.1% to 173 a foot. There are 114 active listings in Paradise, and homes are selling, on average, in 47 days, a decrease of 5.0% in the number of listings, and a decrease of 6% in the average days on the market. In Orland, the median sales price is up 11.7% to $254,000. The number of active listings in Orland has fallen 9.5% to 38 active listings, and the days on market have dropped 9.1% to 60 day.
If you are considering a move or just want to chat about the market or investing strategies, don’t hesitate to reach out to us!