What’s the latest update from our Butte County market? Here are the answers to some common questions I’ve been getting, which should give you an idea.
First, is it a buyer’s market or a seller’s market?
Currently, we’re in a seller’s market. This means there is high demand for homes but low inventory—we have more buyers than we have homes for sale.
What does housing inventory look like?
It depends on your location and price bracket. For example, in Chico, which is a really good price bracket, there is less than two month’s worth of inventory for homes under $800,000. In Paradise, it’s the same story for homes priced under $400,000—there is less than two months’ worth of inventory. In Magalia and Oroville, there is less than two months’ worth of inventory for homes under $300,000. This means that at the current pace these homes are selling in these price brackets, it will take about two months to sell all of them.
How does this inventory affect home values?
For sellers, this inventory means home values will continue to appreciate. For buyer’s, it just means you might need to be aggressive to increase your odds of getting your offer accepted.
What do interest rates look like?
They’re still low. However, this can vary depending on your credit.
What does this all mean for buyers and sellers?
Again, if you’re a buyer, it means you need to be ready to act quickly. Have your pre-qualification letter and verification of funds ready to submit with your offer. If you’re a seller, it means you must be proactive when preparing your home for the market—doing so will help you net more money at the closing table.
If you have any other questions or you’re thinking about buying or selling in our market, don’t hesitate to reach out to me. I’d love to help you.