Tim is correct. It may be that the continued strength in the Chico real
estate market might be from people cashing out ASAP from the Bay Area --
although many of the "refugees" come from the southern part of the state.
So, it could be that the strength in the "rural" real estate could be
consistent with the faltering Bay Area market.
I might mention that while the influx of "refugees" increases the monetary
value of Chico real estate, it lowers the real value. Traffic gets worse
and worse each year.
On Mon, Jun 25, 2001 at 07:35:45AM -0700, Tim Bousquet wrote:
> Local realtors and developers have made much out of
> the high cost of housing in Chico, demanding, and
> getting, a green light on any housing development
> whatsoever in the name of "providing low cost housing"
> (of course, no one ever tracks the actual prices of
> the developments).
>
> But it's clear to me that we are in the San Francisco
> market. Bay Area residents found that their homes were
> doubling, tripling, quadrupling in value, and they
> could sell them, buy a nice home in Chico next to the
> park for a tenth as much, and live forever on the
> balance. Lots of forty-ish retirees in Chico. This
> obviously drives up the price of housing in Chico as
> sellers market to the incoming retirees.
>
> I imagine this process will even speed up with the
> dot-com downturn, as people leave the industry
> entirely. Can't go on forever, though.
>
> tim
> --- Michael Perelman <[EMAIL PROTECTED]>
> wrote:
> > The collapse of the dot.coms has cut real estate
> > prices in San
> > Francisco, but the previous momentum is still
> > pushing prices up
> > in Sacramento -- about 90 miles away. Chico prices
> > -- about 160
> > miles from San Francisco -- seem to have leveled
> > out, the
> > realators in the sauna tell me. Is there much
> > information about
> > how recessions propagate across regions within a
> > single economy?
> >
> > I read about the synchronization of world economic
> > cycles, yet
> > the lags seem relatively long, even within the N.
> > Cal. economy.
> >
> > --
> >
> > Michael Perelman
> > Economics Department
> > California State University
> > Chico, CA 95929
> >
> > Tel. 530-898-5321
> > E-Mail [EMAIL PROTECTED]
> >
>
>
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--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail [EMAIL PROTECTED]
