Market Overview
Home Prices in Palermo, CA
The median home value in Palermo, CA is $255,273 as of mid-2026, according to Zillow's Home Value Index (ZHVI).That's up 1.2% compared to a year ago and down 3.6% from two years prior.
Compared to the U.S. national median of $410,000, homes in Palermo are priced38% below average. Palermo is part of the Chico, CA metro area.
Over the past five years, Palermo home values have fallen by approximately9.4%, reflecting softening conditions in this market.
Price History
Palermo Home Price Trend
2020
$234,632
$235K
—
2021
$281,828
$282K
+20.1%
2022
$306,208
$306K
+8.7%
2023
$276,668
$277K
-9.6%
2024
$261,532
$262K
-5.5%
2025
$252,155
$252K
-3.6%
2026
$255,273
$255K
+1.2%
City Comparison
Palermo vs. National Median
🏠 Palermo
$255,273
National Median
$410,000
At $255,273, homes in Palermo cost 38% below the national median of $410,000. This makes Palermo a relatively affordable market for buyers seeking value.
Affordability
What Does It Cost to Buy in Palermo?
20% Down Payment
$51,055
on $255,273
Monthly P&I
$1,331/mo
30-yr @ 6.8%
Total Monthly Est.
~$1,690/mo
incl. taxes & insurance
Income Needed
$67,600
gross annual (30% rule)
10% Down Option
$25,527
+ PMI applies
Loan Amount (20% dn)
$204,218
at current rates
Estimates assume a 30-year fixed mortgage at 6.8%. Monthly total includes estimated property taxes and homeowner's insurance. Actual costs vary.
FAQ
Frequently Asked Questions
What is the average home price in Palermo, CA?
The median home value in Palermo is $255,273 as of mid-2026, according to Zillow's Home Value Index (ZHVI). That's up 1.2% year-over-year.
How much have home prices changed in Palermo?
Over the past year, home values in Palermo have increased by 1.2%. Over five years, prices have fallen approximately 9.4%.
How much do I need to earn to buy a home in Palermo?
To comfortably afford the median home price of $255,273 with a 20% down payment ($51,055) at today's rates (6.8%), you'd need a gross annual income of approximately $67,600. This assumes keeping total housing costs at or below 30% of gross income.
How does Palermo compare to the national average home price?
The national median home value is approximately $410,000. At $255,273, homes in Palermo are 38% below the national average.
What metro area is Palermo part of?
Palermo is part of the Chico, CA metropolitan area. Home prices and market conditions can vary across the broader metro region.