What’s Happening???????

By: Mark Wisterman

My 2013 Photo-Web-Revised

 

So do you ever wonder how a real estate agent reacts to a weekly market report like this one after being through 7 years of career challenges like the Lake Oroville real estate market  has presented?

The answer lies in the 1982 movie “Poltergeist” Click on the image to get the answer.

Yes, you heard it right. “What’s happening?” is the most fitting thing to say about the last 3 weeks of market activity for the Lake Oroville real estate market. The numbers have been so paltry lately that there is almost nothing worth while on which to comment.

I do think, however, that there are two interesting items to note in this information.  First, of the 4 “distressed” Oroville area homes that have sold over that past 3 weeks only 1 of them has been a bank-owned foreclosure. Secondly, with the very small number of homes in the Lake Oroville housing market that have sold,  you might anticipate that the number of homes on the market might show some increases as potential home sellers see market activity picking up over the past few months.  Apparently, if you had anticipated such an increase, you would be wrong. The number of Oroville homes currently on the market hasn’t budged.

So, What’s Happening? Here are few ideas as to what might be the issue:

1. A 1%+ increase in the 30 year fixed mortgage rate over the past couple months.

2. Buyer resistance to the surge in home prices.

3. An economy that is NOT recovering.

4. All of the above

What do you think is fueling this downturn?

 

MLS Stats for Oroville Area Week Ending Week Ending Week Ending % Change 6 Month
8/8/2013 8/15/2013 8/22/2013 Previous Week Average
# of Total Sales 7 7 3 -57.14% 12
# REO/Short Sales Sold (SS) 0 4 0 -100.00% 5
% Sales that are REO/SS 0.00% 57.14% 0.00% -100.00% 35.70%
Avg. List Price $131,100 $118,043 $199,633 69.12% $139,422
Avg. Sold Price $130,243 $116,029 $185,667 60.02% $134,284
Sold Price % of Listing Price 99.35% 98.29% 93.00% -5.38% 96.31%
Avg. Days On The Market 51 88 76 -13.64% 78
Total Sales Volume $911,700 $812,200 $557,000 -31.42% $1,640,415
# of Single Family Listings 191 190 190 0.00% 162
# Foreclosed On Market 19 19 20 5.26% 17
% of Foreclosed on Market 9.95% 10.00% 10.53% 5.26% 22.19%
# Short Sales on Market 8 10 9 -10.00% 8
% Short Sales on Market 4.19% 5.26% 4.74% -10.00% 4.79%
Days of Inventory Left 191 190 443 133.33% 114
# of Pending Sales 65 70 73 4.29% 79
Data compiled from the CRMLS multiple listing service for single family homes in the
Greater Oroville real estate market area including the areas of Oroville, Palermo, Concow,
Forbestown, Bangor, Berry Creek, Brush Creek, Honcut, Yankee Hill
Information deemed reliabe but not guaranteed.

 

 

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2 thoughts on “What’s Happening???????”

  1. Mark Wisterman

    Thanks for the comments, Mike. What will be important going forward is to educate buyers that it is absolutely necessary that they actually take time to save some money towards the purchase price of their home. There seems to be a HUGE expectation that a seller will be willing to pay a portion of the buyer’s closing costs. In many cases this will not be the case. Saving money to either make a larger down payment or to pay for their own closing costs is something every buyer should be doing.

  2. I have to agree with you Mark..But keep in mind, on a $150,000 loan (my avg loan amount for the Oroville area) the increase in monthly payment is less than $90.00 a month increase for each 1% raise in mortgage rates.
    Keep up the good work Mark.

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