2021 saw a massive spike in prices for Butte County, almost unlike anything we’ve ever seen before. Here are some of the staggering numbers from Butte County Real Estate in 2021:
It’s not just Butte County seeing these trends; they’re happening all over Northern California. Low-interest rates, low supply, and a spike in home buying have continued to spur the Bay Area and Greater Sacramento to all-time highs.
From bidding wars to a continuous market, these experts see the impact of the Bay’s and Sacramento’s white-hot market:
“It’s frustrating to be a buyer in this market. There are multiple offers, bidding wars, paying $200,000 over asking is just the norm,” – Khrista Jarvis.
“We really don’t have an off-season. It really just comes down to whether people are in town to actually look at and bid on the homes put on the market,” – Aaron Bellings.
“The numbers aren’t quite keeping up with the actual dynamic of the housing market; still, it is a pretty penny for a new home in Sacramento, no doubt about it.” – Kelly Brothers.
Because of the craziness in the Bay and Sacramento, cities like Paradise, Chico, and Oroville are slowly becoming some of the more affordable yet desirable areas to live in Northern California. Especially when you look at the Bay Area’s continued unaffordability and the increased cost of Greater Sacramento. Butte county offers increased acreage, lower congestion, and a significantly lower price point. With this new demand, Butte County’s limited supply has become a real issue.
In the last five years, Butte County’s inventory of homes for sale has consistently decreased each year. In January 2016, there were 617 active listings in Butte County. Compare that to only 212 active listings in December 2021 – and you can see the issue.
Since 2019, interest rates have risen and topped out at just below four percent in December 2021. Historically, this is still relatively cheap, but it could go higher over several years. As inflation continues to rise, so might the average home mortgage interest rate. As the interest rates climb, buying power reduces and could open up the Butte County Real Estate market significantly.
It’s hard to predict precisely where the Butte County real estate market will go in 2022. However, we can make educated guesses based on current trends and data.
Although development projects are now being built in the region, completing these projects will most likely not keep up with demand. If the availability doesn’t improve, prices could potentially continue to rise as buyers compete for a limited number of homes. Combining our local demand with the overall trickle down from the Bay Area to Sacramento to elsewhere, Butte County will likely expand.
The looming counter to all this demand is inflation and the continued rise of interest rates. While still historically low, a rise in rates could quickly offset Butte’s current expansion. Overall, It’s likely that prices will continue to increase but at a more moderate pace than we saw in 2021.
For now, we expect Butte county to remain a seller’s market and encourage anyone interested in selling their home to speak with a real estate professional (like us)! Regardless of whether you’re thinking of buying or selling in Butte County this year, we highly recommend you reach out to us!
Our team has the local market knowledge and experience needed to help you navigate Butte County’s real estate market in 2022. Book your real estate consultation with DoorTru below and start your real estate journey.