By: Mark Wisterman
One of the more difficult things to measure in the Lake Oroville real estate market, and quite frankly just about any market that has any type of diversity in the make up of homes, is how much values may be increasing or decreasing as the case may be.
Your everyday, run of the mill real estate agent usually falls into the trap of using price per square foot to value properties. If the agent thinks that homes are selling for $100 per square foot and your home is 1500 square feet then your home gets valued at $150,000. Now this may work great in area where there are plenty of cookie cutter subdivisions in which there are only 3 or four different floor plans. But, in the more rural areas like the Lake Oroville real estate market, this valuation approach is not reliable. Valuations in a town with such diverse property types can be quite the challenge which is why sites like Zillow and Trulia are sometimes very inaccurate in our area when it comes to their estimates of values of homes in the Oroville real estate market. There are just too many variables to consider if you are trying to take a simplistic approach to valuations.
Today I have a chart that takes a little different approach to looking at how prices are changing for homes in the greater Oroville area. This chart shows the behavior of home prices for active listings as a percentage of the overall market over the past year. For example, on February 1 2013, thirty percent of the homes on the Oroville market were priced between $100,000 and $149,999. On July 12, 2013 the number was 23%. I have broken values down into 8 different price ranges and I am recording these number on a semi annual basis in the hopes that it will provide more insight into what is happening with asking prices of homes in the Oroville market. There is definitely a shift going on. The big question is, will the shift result in fewer buyers being able to buy homes?
For a full screen look at the chart just click on it.