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CHICO REAL ESTATE - California Housing Market Report- CHICO HOUSES

By Steve, Joel & Steve A. Chain

Real Estate Broker/Owner with Chain Real Estate Investments & Mortgage, Steve & Joel Chain

December 25, 2009 03:17 PM

CHICO REAL ESTATE - California Housing Market Report- CHICO HOUSES

There are numerous factors driving California's real estate market. CAR (california association of realtors) reports the following:

Chico Door to Home Ownership image

GOING DOWN:

Sales volume bottomed out over 24 months ago.
Median home prices bottomed out February 2009.

GOING UP:

California remains ahead of the nation in market recovery (source CAR VP/ Chief Economist Leslie Appleton-Young).
Median home prices are $60,000 higher than 2 years ago.
Median home prices are up 5.8% over 1 year ago and presently stands at $304,520.
Sale volume has increased 26.3% in November relative to 1 year ago.

MARKET MOMENTUM MATTERS:

There are 3 factors that fuel the present market:

Interest rates are historically low.
Inventories are priced remarkably low.
Federal tax credits are still available for purchases started by April 30,2010.

Buyers Sellers and even industry experts can argue about the present market and it's future direction, but the effects of these 3 factors on the market create a certain reality:

Perhaps a great question might be how long will the door of opportunity be open for homeownership and buying Chico Real Estate?

SEARCH CHICO REAL ESTATE SEARCH CHICO INFORMATION

Fore Buyers & Sellers Seeking More Chico Real Estate Information Contact:

Phone: 530-370-1818 Email: steve@chainrealestate.net

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Rich Cederberg

eXp Realty - Albuquerque, NM

eXp Realty Agent Albuquerque

Steve,

Those stats look good for your market heading into 2010. Buyers need to get off the fence and purchase cause interest rates will be heading up!

Dec 26, 2009 12:22 AM

John Occhi

AZ Veteran Notary Services - Marana, AZ

Mobile Notary Public/Certified Loan Signing Agent

Steve,

I wonder how true this really is - I saw the same stats published by CAR - lets just say I have never been a big fan of their Kool-Aid.

Sure we are up from 2 years ago - but how far had we sunk to get to that point? How far are we from the peak? To me, this is more of the quesiton of reality.

Happy New Year,

John

Dec 26, 2009 02:53 AM

Sandi Bauman

Chico Homes Real Estate - Chico, CA

Chico CA Realtor

Not to be pessimistic, but I have to concur with John.

Spending day after day pricing Chico CA properties, as well as the major surrounding areas, I can't support the opinion locally that prices have bottomed out, and that they are actually up over last year. Prices continue to drop, and the foreclosure inventory is expected to increase exponentially over the next few months, which is likely to continue to drive prices down.

Does that mean it's NOT a fabulous time to buy? Of course not.... the past year has provided an incredible buyer's market, and I would encourage homeowners and investors alike to watch for great opportunities in the coming months. I just wouldn't go so far as to say prices are already on the rise for Chico locals.

Dec 26, 2009 04:40 AM

Steve, Joel & Steve A. Chain

Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Rich, John & Sandi,

While the statistics are for California, as a whole, wise Buyers and Sellers will do well to recognize 2 other key factors effecting successful real estate transactions. Those are:

Federal Tax Credits of $6,500-$8,000
Interest Rates Presently around 5%

Having experienced several business cycles over 31 years in business we saw interest rates change in 1979 with far less warning than the present real estate market devaluation. Interest rates went from 10% to 21%. That my friends was a game changing event in real estate and construction.

It is our opinion many are focused primarily on the price of homes and ignoring the seemingly sleepy giant in the form of low interest rates. While that is understandable due to the fact falling prices have created the most attention. The disciplined market observer will be looking at the big picture.

Industry experts may say what they will about the forth coming increases in foreclosure inventories, but the past is no indication of the future. Banks are wiser now that 2 years ago about drip feeding their inventories into the markets. If you don't know what I'm talking about take a look at Las Vegas and the bank's strategic marketing and DOM's. This had created bidding wars in perhaps one of the markets hardest hit by falling prices.

Lest we also forget we are not in a true free market economy, but rather a policy driven economy. Our Government and the Federal Reserve have proven more than once their capacity to change the natural course of the economy.

What will the real estate practioner's recommendation be to the potential buyer hoping to purchase at the absolute lowest price locally, if interest rates SUDDENLY move beyond the reach of the buyer? It's one thing to be waiting for a better bargain than today's bargain. It's quite another to miss the purchase opportunity altogether.

Ask any economist this question. "Without the present Federal Reserve Policy where would mortgage interest rates be today?"

My comments are not intended to pressure anyone into making a purchase today. Each of our buyers and sellers will make their own decision. I'm simply providing information that I trust will empower buyers and sellers to make quality decisions regarding the timing of Chico Real Estate transactions.

Steve

Dec 26, 2009 04:41 PM

CHICO REAL ESTATE - California Housing Market Report- CHICO HOUSES

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