The Chico Housing Market after the Camp Fire
The Camp Fire needs no introduction in Butte County, stop and talk to almost anyone passing by on the street and they can tell you how they were affected by the devastating fire. It should come as no surprise that the fire impacted the Chico housing market. While there has been a lot of rumors and speculations about landlords kicking tenants out to capitalize on the hot market or houses selling for $100,000 over list; let’s look at what the data tells us about the Chico housing market prior to the fire and the months after it.
Prior the fire single family residences in Chico were being sold for under the list price, in August of 2018 the median sales price was $337,950 while the median list price was $349,000. Compare that data to January 2019 sales: the median list price was $389,000 while the average sale price was $406,970. This is a jump in both listing and sale price. This was a direct result of the fire which created a huge demand for housing, and in turn, created a jump in prices. This is not the only data we have to look at. To better put the demand for housing in perspective, let’s look at the number of sales per month in Chico.
In September of 2018 there were 99 Single Family Residences sold, while in December of 2018 there were 241 homes sold. This statistic helps highlight the huge surge in demand for housing as camp fire survivors attempted to find a place for their families.
What does the Chico housing market look like now that most people have bought a replacement home, found temporary housing or left the area?
From January until June of 2019, homes are being sold for above their list price. However, we are seeing the amount over list price decrease. For example: in May the median list price was $399,000 while the median sale price was $412,500. In June both the median list and sale price decreased. The median list price was $395,000 and the median sale price was $399,000. Without a crystal ball it is impossible to predict what the future holds for Butte County and the Chico housing market. However, trends can be observed and here is my observation: as Paradise and the surrounding communities rebuild and people have settled into housing we should continue to see homes sell closer to list price if not under list price.