[ad_1]
Now, the population has increased from 10,000 to 20,000 because of people who fled the fire, not to mention the hundreds of repairers and restaurateurs from state and federal agencies and the Utilities Pacific Gas and Electric. This pushed the city's population – an hour and forty-five minutes north of Sacramento, on Route 99 in California – about as it was expected in two decades.
"Growth occurred overnight. It's a bit incredible, "said Orme. It feels like a city in a city. "
The result has been a boon for many businesses and an unexpected benefit for homeowners willing to leave, but a costly and frustrating challenge for an overburdened municipal government and people who yearn for the old Chico d & # 39, before the fire.
Housing was already tight, before the campfire was hunting thousands of people from the foot of Sierra Nevada, in Chico and other communities. doubled and prices jumped 21% in December compared to the same month in 2017.
Earlier this month, Realtor.com named Chico as the most popular market in the country, depending on the number of Most homes remain on the market, averaging 37 days in December.
"This is more like what you would see in the dense urban areas of the coast," he said. Dan Jacuzzi, CEO of a chain of more than 60 agencies real estate in northern California and northern Nevada. "We have never seen a market in the Central Valley with 17 and 20 offers on a single list and homes selling at US $ 50,000 compared to the asking price initially and above."
After nearly 40 years in real estate in the area, Jacuzzi said Cindy Cosby, a real estate agent who primarily represents buyers in Chico, said the price increase was less due to higher prices charged to homeowners than to those in the area. buyers who have raised prices.
There is no indication that price inflation has slowed. A three-bedroom hotelier on La Mesa Drive in the north-east of the city paid $ 230,000 immediately after the fire, about $ 228 per square foot. In mid-December, a similar house on the same street cost $ 360,000, or $ 312 per square foot, according to Cosby. The house was slightly in better shape, but the higher price was mainly due to the growing desperation of buyers to set up shop, said Cosby.
Many of them have already received insurance benefits for their homes in Paradise, Magalia and other communities. But they are not ready or able to wait the next two or three years, according to the forecasts, that will be necessary to rebuild. (Officials say it will take a long time to repair water systems and septic tanks, review plans and complete construction work in an overloaded market.) With money to spend and temporary premises where they may not be able to stay long term, many are buying now.
Cosby, who works for Century 21 Select, said some salespeople did not feel comfortable with their profits because they did not want to seem to enjoy the misfortune of others. She called the market "overpriced" and said it was hard to see buyers left out for homes that would have been affordable three months ago. "It's sad," she said. "I hate to look at it."
Becky Kambourian lives with her husband and three children in a guest house rented in Chico since their home in Paradise burned. They even hesitated to make an offer for a new home, as prices skyrocketed.
"Every day, prices seem to be getting worse," Kambourian said. "There are just more people than there are places to live in, so I think it will take time to calm down."
Jacuzzi, the real estate veteran, agreed, stating, "We have the impression that increases will slow down but we do not expect lower prices, as demand pressures will not go away quickly. And the possibility of replacing as many houses is a multi-year process. "
The availability of willing and money-rich buyers has also prompted some homeowners to evict tenants to sell them. This puts additional pressure on an already tight rental market.
Companies profit from it, with a population of at least 11% and hundreds of waste pickers still in town.
The business of Tin Roof Bakery and Cafe recorded a 25% increase in business in December, compared to the previous year, said Jordan Vogel, General Manager . Restaurants that normally order 20 to 30 loaves a day have doubled their orders, he said.
Danny Solis, owner of Danny's Barbershop in the downtown area, said he saw his revenues climb by about 20%, his eight barbers registering as many as 100 new customers a week, many of whom work in public services for the massive reconstruction of the Paradise power grid.
Cocodine Thai Cuisine is right next to the highway that most people use to get between Chico and Paradise, 19 kilometers away. Business has jumped 30%, said owner Terry Kulimakin. "People have insurance money to spend and do not feel like cooking, with all the other stress," said Kulimakin. So they go out to eat. "
The boom in trade would seem auspicious for Chico's finances. But it is not that simple.
The destruction of much of Paradise has reduced the overall property tax base in Butte County, and state legislation requires communities to equally absorb these losses from disasters. Chico 's property tax revenues will therefore decrease by approximately $ 900,000 in the first year.
Source link
