For those buyers that have felt sidelined by the competition in the market, you are in for a treat! Inventory levels are finally rising and the frenzied bidding war climate we have been operating in has cooled to a sane level! I have actually written offers these last couple of weeks where there was NO competition, and we had price negotiations as opposed to auction-like bidding! This, of course, is not great news for sellers. We certainly aren't in a buyer's market, but it is a less competitive market, and it is becoming increasingly important for sellers to be realistic in pricing their homes.
In Chico, 118 single family homes sold in June, a drop of 20% compared to June 2021. Perhaps the most exciting news for buyers is that the average number of active listings in Chico rose to 161, a 41 % increase over last June. Nationally, experts are predicting a 15% increase in housing inventory this year. The median number of days on the market for homes in Chico inched up to 8 days, from only 5 days the previous year.
According to Realtor.com Chief Economist, Danielle Hale, "The housing market is at a turning point...We're starting to see signs of a new direction, but the ball is still in the sellers' court in most markets." I have lost count of how many times I have been asked if the real estate bubble was finally going to burst. The answer is a resounding NO! There is no bubble. It's not going to happen. But, the market is definitely shifting and I think it is happening faster than we expected.
You have probably seen this slide on social media showing the experts predicting an 8-9% appreciation in 2022. The thing is, this appreciation has already occurred, mostly in the first quarter of the year. With high rates of inflation and rising mortgage interest rates, prices have leveled off. Chico's average home price in June was $548,176, the median home price was $475,000. We certainly don't have a crystal ball, and wildly fluctuating interest rates make it more complicated to predict, but we agree with experts, expect flat to modestly rising home prices this year. Whether you agree or disagree, we'd love to hear from you!
