CHICO, Calif. - The demand for new housing in the U.S. surged by 4.3% just in the month of January. Now, we are seeing this surge in Chico.
More people are buying homes lately but that also leads to a shortage of new homes.
“We have an inventory shortage overall across the United States, so it really makes the prices of homes go up and they go up and up,” said relator for Keller Williams, Lisa Bristow.
But is it the same here in Chico?
“We’ve got around 70 homes just in the Chico area for sale, which normally we have 240 homes to 200 homes,” said Williams. “It has been right around that number which is normal. So we have 70 homes for sale which makes the prices go up and what we are seeing is we have multiple offers on properties which I think people hear that a lot.”
Bristow has been a realtor since 2006. She said selling homes during the pandemic has been very different.
“Before, you could go to an open house. Now, there are no open houses, so you have to be pre-qualified with a lender or if it's cash - you have to show them you have the cash to buy the property,” said Williams.
With more people working from home due to the COVID-19 pandemic, Williams said people are wanting bigger homes.
"Bigger space outside with a pool, or they want acreage," explained Williams.
Another realtor said more people are moving to Chico from the Bay Area.
“I’ve heard many people that couldn’t afford to buy a home in the Bay Area are now moving back to the North State, Chico specifically because they can afford to buy a $350,000 dollar house down there instead of just renting,” said Chico realtor, Craig Brandol.
As of Thursday, there are only nine homes in Chico that are for sale and are under $350,000.
Since the beginning of 2021, there have been 92 sales of homes per month. There are currently 76 homes on the market and 126 pending.