Right on cue the market has begun to pick up as expected this month. The first 10 days of this month saw 24 of the 84 Chico homes priced under $300,000 go pending. That’s an average of 2.4 entry-level homes per day! I don't expect that pace to continue but it should be a brisk pace from here on out. I expect prices to go back to the levels they were at the during peak of the market last year. I think the best performing area of the market will be the entry-level area. I expect the slowest area of the market to be that of the homes in the $475,000-$550,000 range particularly the tract homes on small lots many people snapped up in the last two years. There continues to be pressure on long-term interest rates. With the last increase of 25 basis points it sounds like the new Chairman may want to continue to tighten monetary policy. Look for the possibility that the new Chairman may continue to raise rates for a bit longer. Spotlight property: again this month it’s at 137 W.11th Street. It is priced right and would make a great first home or a fantastic student investment. It has real hardwood floors, fresh paint on the outside and is in a great location. To find out more information about this property or any other home in our area please log into my website. Congratulations to Aunt Grace, she turned 90 on Valentines Day this month. She is truly a family treasure and a joy to be around. Blackjack Working 1 Aunt Grace Apparently the now famous hunting party in Texas could learn a thing or two from my nephew Josh, safety is the only issue. I will be out of the office from the 9th through the 13th, I will be checking in with the office but if you need something during this time please call the office and ask for Shawn, he will be happy to take care of you. This month marks the end of my second year with West Coast Realty. Making it two years is a milestone in this business, over 90% washout before 2 years. Thanks Shawn and Jolyn! I started as Shawn’s assistant for my first four months. It is a very good fit for me here. Remember you have a friend in the business; if you or someone you know needs my help please get in touch ASAP.
December 23, 2005 Crystal Ball Time
I continue to be asked what’s going to happen in 2006 in the local real-estate market. In the next few lines I will try and give you my best guess, so here goes. The local market has a slow period every year, it’s said that it’s slow between Halloween and the Super Bowl. This year the slow down accrued when the hurricane Katrina hit the gulf coast, and that was earlier than in past years. This has left a lot of houses on the market through the fall and early winter. Interest rates have continued to raise and now stand around 6.5% for a 30 year fixed with no points. Home prices have dropped around 12-15% since the highs we hit this past summer. I think this has created an opportunity for first time buyers and investors. The Fed has changed the wording in there statement about rates moving forward, which indicates we are near the end of the rate increases, maybe one or two more. This spring I expect that the interest rates will peak, and the inventory will start to come down. When the inventory starts to come down prices will be pressured upwards. The same things that make our area special are still here and more and more people want to be home owners in the Chico area. I expect to see prices start to move up from there current levels in March, and return to the summer levels by the end of April, or early May. I am predicting a year over year increase in home values in our area of 5%-8%. There you have it, my look into my Crystal Ball. ChicoareaRealestateOnline.com
My website for your use free! Please use and enjoy. My spotlight home this month is an investor or first time buyers special. It’s a 2 bedroom 1 bath built in the 1930’s. It has a load of charm, and is waiting your special touches. Its located at 137 W 11th avenue here in Chico. It has real hard wood floors and updated kitchen and bathroom. Its location would be great for either a young family or for a student. This area of Chico has been undergoing a rebuilding period for the last couple of years, and has come around very nicely. Please see this listing on my website above or drive by. Give me a call when you are ready to see the inside of this charming home. As for me, the shopping is done; all the Christmas parties are over, now its time to find out if Santa is going to be good to us! Its been a great second year in the business with West Coast Reality, and look forward to helping all of you in the new year with your real-estate needs. I will be out of the office from 12-26-2005 until 1-2-2006. If you need something during this period please call my office number 891-1116 and ask for Shawn or Brodie. Robert Hightower West Coast Reality Novemeber 2005 Opportunity still knocking Opportunity is still knocking for the first time homebuyer in the Chico area. Prices remain soft and sliding a little. Entry-level homes are starting around $275,000; the same homes were $300,000 at the peak of the summer selling season. We are now firmly into the “slow” season for real estate. The typical slow season is Halloween until the Super Bowl. Our slow season started early this year for various reasons, but it has afforded some of you an opportunity to pick up your first home, or investment property before prices have a chance to go up in the spring. If you’re looking for your first home, or investment property the best time is now, let’s move before rates move up further! This month I launched my own website. Please give it a look: ChicoAreaRealestateOnline.com. It’s a free site I set up for my clients to use whenever you like. I would love to hear your feed back about the site, let me know if it’s lacking anything you feel you might need. Again this site is for you and your friends and family to use any time, and again it’s free. Some people are unaware, that when I act as a buyer’s agent for you, there is no cost to you at all. So give me a call and become one of my VIP buyers The featured home on my site is my listing on Keith Lane. I love this location and this house. This North Chico area is a favorite of local residents. It’s an area of larger homes on big ½ acre lots. If your in the market for a updated home on a large lot with plenty of room for your RV, a couple of boats, and any other toys you might want to store this maybe the home for you. It has room for a pool and or a shop in the back. You also have access to the backyard, drive through the large gate or drive in through the gate on your back fence. The property backs up to a Church. You can go to my website and check it out on its Virtual tour. A special thank you to my friends and clients Pat and Lydia. We got their home sold this month. Its always fun working with good friends. I just got back form my annual Colorado trip. It was my first trip back with my good friend Randy. It was by far our best trip. Camping in the Rockies at over 7000 feet this time of year with good friends just can be beat! I will be posting a few sunrise and sunset photos on my website soon. This week Dad, Blackjack and I, made it back out to our bird club for our first bird hunt of the season. It turned out to be a fantastic day with Dad and Blackjack. Can’t say enough good things about Brad and his club in Corning “Clear Creek” anyone wanting more information on getting out there can give me a call. To wrap it up this month our annual Christmas Party is going to be December 9th starting about 6:00pm, hope to see you there. Have a great month, Robert Hightower Ps thanks you for your referrals!
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