Weekly Sales By the Month

By: Mark Wisterman

My 2013 Photo-Web-Revised

Whoever “they” is says that everything happens for a reason.

That must be why it has been over a month since we visited regarding the weekly state of the Lake Oroville real estate market. In all honesty as each week came and went, and because I am certainly not a professional blogger by any means, I struggled to find the words I thought were needed to summarize each week’s activity. Especially given the fact the not much was different from one week to the next.

But just like “they” said, I now think I know the reason. Over the past 5 weeks in the Oroville real estate market we have seen a widening gap between  Lake Oroville area home’s original asking price and the price at which it actually sells.  To see this trend more clearly here is the “Reader’s Digest” version of my weekly Lake Oroville homes sales report.  Here is what I think you can take away from this information, especially if you are a seller:

1. The widening gap between between original list price and the final sales price of Oroville area homes shows that some agents have demonstrated an “irrational exuberance” in pricing homes for their sellers when valuations bounced off the overdone drop in values.  Remember that many agents will purposely recommend an inflated price to get the seller to list the home for sale and then go back in a couple of weeks to convince the seller that the price needs to be reduced.

2. The inventory of homes is NOT loosening up as many homeowners, who would like to sell their Lake Oroville homes, still owe more on their mortgages than their home are worth. It is my belief that we will not see any significant increase in Lake Oroville area homes on the market until values get back to 2005-2006 levels, which, for many Oroville homeowners, could be more than a couple of years from now, or, the banks release more homes onto the market. ( if they actually have any to put on the market). Whether it be one or both of these things that occur, once it does, the rate that values have been increasing over the past 6 months will be a thing of the past and may actually back track somewhat. In other words, putting your home on the market now ( if you are able to) may be the best time to do so.

3. Based on the activity level in my office, the lack of an increase in the number of “Pending” sales is the a result of a shortage of quality, reasonably price homes on the Oroville market. As a homeowner who is considering the possibility of placing your home on the Lake Oroville real estate market you should seriously consider your price-point. It is easy to get wrapped up in the hype that you can promptly sell your home even if you price it a little high, because “you can always come down when an offer comes in.” But remember this: Quality, experienced, knowledgeable buyers agents will not show obviously overpriced homes to their clients and they won’t waste everyone’s time by writing an offer on one either. They will just patiently wait on you to reduce your price and then make a offer even lower than that.

MLS Stats for Oroville Area Week Ending Week Ending Week Ending Week Ending Week Ending
11/7/2013 11/14/2013 11/21/2013 11/28/2013 12/5/2013
Avg. List Price $188,044 $131,322 $145,620 $129,785 $154,580
Avg. Sold Price $189,978 $130,044 $140,840 $124,746 $149,700
Sold Price % of Listing Price 101.03% 99.03% 96.72% 96.12% 96.84%
Avg. Original List Price $196,717 $141,378 $150,020 $139,008 $169,780

Sold Price % of Original Price

96.57%

91.98%

93.88%

89.74%

88.17%

# of Single Family Listings

173

173

169

167

165

# of Pending Sales

63

67

67

67

67

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 reliable but not guaranteed.

 

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Coincidence?…..I Think Not!

By: Mark Wisterman

My 2013 Photo-Web-Revised

 

 This is a little difficult for me to write as I have never been one to speak in any type of open forum about why things like I am about to relate to you happen. 

In the past I would chalk up things like this to “coincidence” or “luck.” But I do not think those things anymore. I think it is much bigger that. And I do mean BIGGER!!

This is just the latest in a series of events that have occurred to me over the past few months that can only be described as, well, indescribable.

This afternoon  I received an Estimated Settlement Statement for my buyer. For those of you who don’t know, these statements are issued by the escrow companies in order for buyers and sellers to see what the financial implications of their sale or purchase is. In this case the estimated statement called for my buyer to bring in a check in the amount of about $6,400 for the balance of their down payment and other closing costs. As I always do, I reviewed the statement before e-mailing to my client for her review. There was nothing that stood out to me as being wrong or out of the ordinary.

About an hour later she called me very confused and concerned about the amount that she was being required to bring in when she signed her loan documents. I do not want to get into the details as to why she thought what she thought about the amount, but she was assuming that she only had to come up with another $3,000 to close the transaction. We talked about it for a few minutes and then I called the loan officer’s assistant to review the numbers with her. Nothing in the numbers had changed since the buyer signed all the lender disclosures.

I called the buyer back to further discuss it with her. Although she still did not quite understand what had happened she said that she had  the additional $3,400 that was needed thanks to her husband’s parents who, by the way, are also co-buyers of the home.

Here is how the part of the conversation went leading up to the reason for this post.

Me: So you have discussed this with your husband’s parents?

Buyer: Yeah. Thank goodness they have the money to help. They have been very supportive. If I had to turn to my parents I would not be able to come up with the money because they could just not do it.

Me: That is great that they are so helpf……..

Buyer: Oh my god!!

Me: What’s the matter?

Buyer: My husband just opened mail from my parents and they sent their wedding gift to us. It is a check for…………………………$3,500.

Me: Are you kidding me.

Buyer: No…… I think I am going to cry.

 

By the time the conversation was over my client was barely able to speak as she was trying to hold back the tears. I hung up the phone and just sit quietly at my desk for a minute or two contemplating what I had just been a part of. All I could think at the time was…WOW!

Like I said, in the past, I would  use words like coincidence, luck, spooky, crazy, etc. But no more. It is events like this and the others that I have witnessed lately that now move me to use words such as, grace, intercession, miraculous, blessing, etc. There can be no other way to explain these things.

To those of you who have long ago had your faith training wheels removed this is probably no big news. But to someone still learning to get my faith-feet on the ground I am still more than a little amazed at what just happened.

Today God provided, in His own time,  and just in time, to my buyer. But He also provided something more to me during a day when I was struggling to get from one hour to the next.

It was this message:

Do everything that you can do and He will do what you can’t.

 

 

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