Summer seems to have arrived here in the north state and the temperatures seem to match the fervor of our real estate markets. It feels like our local inventory is consistently decreasing, while the prices attached to the available properties continues to increase. Echoing this sentiment many would be home buyers are feeling the pinch as they are finding it more difficult to qualify for their dream home due to growing prices and interest rates. In reading a recent article, Lawrence Yun, chief economist for the National Association of Realtors indicated that the trajectory of price growth compared to income growth is “not sustainable” long term. He was also quoted to say that “Elevated home prices, rising mortgage rates, and low supply are creating more affordability issues for consumers. Housing demand remains strong, however, on the back of a healthy economy with low unemployment, meaning people are eager to buy but don’t have the income to match their ambitions.” The article went on further to discuss several things including; 1. Since 2012, home prices have increased 48% while wages only increased 14% 2. The average 30 year fixed-rate mortgage is a full percentage point higher than only 8 months ago. 3. That the housing supply is most scarce at the low-end of the market, driving prices out of range for many “first-time home buyers”.
While this may seem all gloom and doom, we are equipped with some statistics that will help bring this information into a positive perspective. According to data form the California Association of Realtors, the average home price in California is currently $584,500. Looking at May 2018’s sales statistics, Chico comes in on the higher end for Butte county with an average sale price of $375,800 or 64.30% of the average price in the state, while Paradise and Magalia come in at $284,850 or 48.73% and $261,675 or 44.77% respectively. While these numbers aren’t a magic cure-all, it shows that we have a significantly lower price of living than many other areas and hopefully help contribute to a better quality of living here in the north state. Many people want to live in the greater Chico area and are willing to pay the higher prices that are associated with the more urban area, while others who are specifically looking for a more rural atmosphere or even lower prices, are often happily surprised by how much further their money can go or the amount of home and property they can get for similar dollars. The best news in all of this is when people find themselves stretched beyond their comfort-zone we can offer more affordable options than most of the state, as well as our area can offer some of the most beautiful places to enjoy life to the fullest, from lakes and rivers, hiking and biking trails, to more outdoor opportunities than most can experience in a lifetime. We are always proud to call our area home, we hope you will be too.
Warren Bullock is the Listing Manager of the Chari Bullock Real Estate Team and American Homes And Land Real Estate in Paradise. EMAIL; Warren@ChariBullock.com 530-413-0041