September 2025 Market Snapshot: Chico & Oroville Real Estate Update

 

Inventory: Still trending upward compared to midsummer, giving buyers more options.

Days on Market (DOM): Continuing to increase. Homes are staying listed longer than they were in June and July.

Pricing: A lower percentage of homes are selling at or above list price compared to earlier this year. More sellers are making price reductions to attract buyers.

For Sellers:

Pros: Chico continues to see steady buyer interest, especially in well-presented homes with strong curb appeal or desirable features.

Cons: Buyers have leverage with increased inventory, longer DOM, and more negotiating room. Overpricing risks sitting on the market.

For Buyers:

Pros: More choices and stronger negotiating power. Slower pace means less pressure to rush into offers.

Cons: Interest rates are still a hurdle for many, and competition can remain strong for well-priced homes.

 

 

Inventory: Also climbing, showing more homes available than earlier in the summer.

Days on Market: Extending, mirroring Chico’s trend of slower absorption rates.

Pricing: Sale-to-list ratios have slipped, with fewer homes closing at asking. Price adjustments are common, especially at higher price points.

For Sellers:

Pros: Unique homes with land, views, or move-in ready condition still attract strong buyer attention.

Cons: Average listings are seeing more time on the market, and buyers are expecting deals. Pricing competitively from the start is critical.

For Buyers:

Pros: A more balanced market offers negotiating room, inspection contingencies, and a chance to shop without bidding wars.

Cons: While inventory is higher, not every home is a “deal”—buyers still need to evaluate long-term value and repair costs carefully.

Overall Market Trends Compared to June – September

Homes are staying on the market longer in both Chico and Oroville.

Asking prices are less likely to be met, with more reductions happening across the board.

Buyers currently hold more leverage than earlier in the year, but motivated sellers and standout properties can still move quickly.

Key Takeaway

The market is shifting toward balance after a hot spring. Sellers need to price strategically and be flexible. Buyers finally have negotiating power—but waiting too long could mean facing more competition if rates ease or inventory shrinks later this year.