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Does 2009 Bring Opportunity To Chico Home Buyers and Real Estate Investors?

By
Real Estate Agent with Aloha Realty

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...

Total Sold     1st Qtr.    2nd Qtr.     3rd Qtr.     4th Qtr.
Sold: 133 244 210 182
Avg. Price: 341,586 338,022 308,937 298,199
Median Price: 292,000 291,250 271,500 268,250
Days On Market: 92 64 86 64
         
REO's
Sold: 5 38 47 47
Avg. Price: 343,980 257,794 239,924 255,960
Median Price: 250,000 265,500 238,000 228,900
DOM: 50 37 33 38
         
Short Sale
Sold: 3 10 12 9
Avg. Price: 231,667 281,320 272,542 275,317
Median Price: 230,000 270,500 243,500 255,000
DOM: 99 39 105 110

*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.

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