HOUSING OUTLOOK REMAINS COMPETITIVE
CHICO >> The housing market outlook for Chico heading into March continues to tighten with demand high and prices of new homes rising.
Realtor Carl Henker of Coldwell Banker said unfortunately, market reports for February show the market stayed quite stagnant throughout Butte County. Chico had 85 real estate listings all month compared to 120 pending sales, while Oroville saw 90 listings and 70 pending sales and Paradise and Magalia together had 48 listed and 43 pending sale.
The Zillow home index holds Chico’s average home value index at $408,747. The current pricing increase is outpacing even the high point reached in December
2019 when average home values reached $398,000.
“Inventory’s not increasing, it’s still selling just as fast as they come on the market,” Henker said. The same is even true in Paradise, although housing and land do not sell as quickly in the town.
And, there’s very little building coming on line in the next several months that Henker thinks would greatly change the market. Subdivisions set to come to Chico are not likely to be finished until late summer, and Henker said there is demand for them if housing prices can be kept in the high $300,000 to low $400,000 range. These are typically small lot houses in the 1,200 to 1,500 square foot range.
Pricing is high throughout the county. Of Chico’s total listings, the majority or 35% were listed above
$600,000. The majority of new listings in Paradise (38%) and Oroville (30%) were listed above $400,000 as well. The majority of pending sales were listed in the $350,000 to $400,000
range in Chico, $300,000 to $350,000 in Oroville, $400,000 in Paradise and $250,000 to $299,000 in Magalia.
Both of the latter con
tinue to have a number of land lots listed, totaling 123 in Oroville with 99 and 50 in Paradise and Magalia, respectively.
Prices trending upward reveal much has remained the same for the overall market, after over a year of most housing being marketed as multifamily “luxury” or for single families, particularly in Chico. In addition, Henker knows of a variety of private parties still buying scattered lots around Paradise, having to buy multiple lots rather than whole streets. As nearly all are single family lots, Henker said he doubts builders will be affected by the town’s pursuit of a new sewer system and can likely begin construction sooner.
While a side effect of the COVID-19 pandemic, homeowner forbearance and foreclosure, could bring more foreclosed homes on the market, Henker said he is “not sure that’s going to really happen either.”
“Many people in forbearance continue to make their payments. A lot of them have equity,” he said.
Chico projects
Approval of development with the potential for high amounts of construction is signaling movement in some parts of the county — such as in Chico where Meriam Park development continues and several affordable housing projects were given the green light.
High density development moves forward in the Meriam Park Development between Notre Dame Boulevard and Bruce Road, where a final subdivision maintenance map was unanimously approved March 2 by the Chico City Council. And the council approved the Bruce Road widening project Feb. 2 to create a four-lane roadway and improve infrastructure to allow additional building opportunities.
Despite a number of complaints made by neighbors living near the former location of The Graduate at 334 West Eighth St., proposed to become a new four-story apartment complex, the council approved the project for moving forward March 2. The project will be 62 multifamily residential units approved in an office residential district with 128 parking spaces. Residents living near the property appealed on the basis of multiple complaints such as the property’s ownership by Garret Gilliland III, allegations of peak traffic impacts and “inadequate notice,” but were denied.
Low density residential subdivisions continue to
come forward. Chico’s Planning Commission reviewed a request Thursday to subdivide a 1.71 acre parcel between West Lassen and West Shasta avenues into 12 lots for small lot singlefamily residential development. The project proposes a gross residential density of seven dwelling units per acre, with the average lot size being 3,906 square feet and is categorically exempt from further environmental review pursuant to California Environmental Quality Act guidelines.
The city is asking for anyone to complete the online Housing Element survey, for information about the eight-year process and to give feedback about community development and housing concerns, at www. chicohousingelement.com by March 31.
Contact reporter Natalie Hanson at 530-896-7763.