We’ve heard the hypothesis (in fact we’ve perpetuated it) that homes are significantly more affordable if a buyer is willing to drive to the outlying areas outside of Chico to purchase…but is that true? To test this theory lets look at average sales prices in: Chico, Durham, Orland, Forest Ranch, Oroville and Paradise.
For the purpose of this comparison we applied the following parameters: Sold prices of all homes on under 6 acres between June 1 and August 31 of 2009. We chose sold prices because ‘for sale’ prices can range from ridiculously over-priced to strategically under-priced…SOLD prices being the true market value. Many homes in the outlying area are by nature on larger parcels, to make sure that they were included we set the bar at 6 acre lots or less. And we chose the window of June – August as representing the busy summer buying season to obtain the greatest number of comparables.
Because the size, quality and other features of the homes varied so much, rather than focus on price we decided to compare COST PER FOOT. Averaging the cost per foot eliminates the disparity of size etc. and gives us a good waypoint for comparison. Foreclosure and distress sales brought the average down across the board.
Leading the list of most affordable communities was Oroville. At slightly over $86 per foot the Butte County seat had lower prices than much of the rest of the state.
Next was the Glenn County community of Orland at $116 per foot. During the heyday of the real estate boom Orland underwent a hasty transformation from rural hamlet to bedroom community as many Chico families sought lower priced homes in exchange for a 20 minute commute. Outside of the town’s core however the country feeling still prevails.
Paradise, long a retirement haven just 15 minutes from Chico averaged $128 per foot, significantly lower than the nearby wooded ridge community of Forest Ranch at $145 per foot.
Durham, a sought after location because of it’s high performing schools and rural charm came in at $163 per foot, providing a small price discount by way of the seven mile drive from the much larger Chico
There were 210 sales of residential homes in the area immediately in and around Chico during that period, far more than in any of the other areas we compared. The average price per foot was $172, infinitely more affordable than L.A. or the San Francisco bay area, but at the top of the pile for Butte County.
So, here was a ‘myth’ that proved true. For a home-buyer on a budget, that doesn’t mind the commute, shopping for a home in the outlying communities within 20 minutes of Chico might be the key to making home buying a reality!
For the purpose of this comparison we applied the following parameters: Sold prices of all homes on under 6 acres between June 1 and August 31 of 2009. We chose sold prices because ‘for sale’ prices can range from ridiculously over-priced to strategically under-priced…SOLD prices being the true market value. Many homes in the outlying area are by nature on larger parcels, to make sure that they were included we set the bar at 6 acre lots or less. And we chose the window of June – August as representing the busy summer buying season to obtain the greatest number of comparables.
Because the size, quality and other features of the homes varied so much, rather than focus on price we decided to compare COST PER FOOT. Averaging the cost per foot eliminates the disparity of size etc. and gives us a good waypoint for comparison. Foreclosure and distress sales brought the average down across the board.
Leading the list of most affordable communities was Oroville. At slightly over $86 per foot the Butte County seat had lower prices than much of the rest of the state.
Next was the Glenn County community of Orland at $116 per foot. During the heyday of the real estate boom Orland underwent a hasty transformation from rural hamlet to bedroom community as many Chico families sought lower priced homes in exchange for a 20 minute commute. Outside of the town’s core however the country feeling still prevails.
Paradise, long a retirement haven just 15 minutes from Chico averaged $128 per foot, significantly lower than the nearby wooded ridge community of Forest Ranch at $145 per foot.
Durham, a sought after location because of it’s high performing schools and rural charm came in at $163 per foot, providing a small price discount by way of the seven mile drive from the much larger Chico
There were 210 sales of residential homes in the area immediately in and around Chico during that period, far more than in any of the other areas we compared. The average price per foot was $172, infinitely more affordable than L.A. or the San Francisco bay area, but at the top of the pile for Butte County.
So, here was a ‘myth’ that proved true. For a home-buyer on a budget, that doesn’t mind the commute, shopping for a home in the outlying communities within 20 minutes of Chico might be the key to making home buying a reality!
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