Looming Deadline Could Doom Your Loan

Take heed Lake Oroville area home buyers.  You may be about to have your home buying plans moved to the sidelines.

This information is also valuable to  Oroville home sellers as it is entirely possible that the pool of potential home buyer could be shrinking.

Watch this latest video for a brief explanation for why this may happen to you.

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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FHA And The Partial Shutdown

Lake Oroville market, Oroville home sales, butte county home sales, Oroville real estate, homes for sale, Chico real estate, chico home sales, paradise homes for sale, financing, loans, FHA, Oroville real estate agents.

Time Flies- Another Week Behind Us

By: Mark Wisterman

My 2013 Photo-Web-Revised

 

The preliminary market results are in for home sales in the Lake Oroville real estate for the most recent week.

I say preliminary because I discovered a bit of a glitch in how I have been reporting the weekly home sales numbers for the Oroville market. The week that I report on runs from Friday through Thursday of each week. What I discovered is that some agents are not getting their sales logged into our multiple listing service in time for me to pick them up for my weekly report causing an under reporting issue for Lake Oroville area home sales.  To correct this issue I will be revising the previous weekly Oroville home sales numbers at the time that I gather data on the recent weekly market numbers. I want you to have the most current and relevant data as you can possibly have and this new reporting standard will help with that.

Speaking of current and relevant numbers, I am making big change in this weekly report chart. Beginning with this report I am no longer providing data on the number of bank-owned Oroville homes for sale or the number of homes for sale in the Oroville market that are considered short sales. The reason for this is that the current level of these homes on the market is insignificant and they are no longer making a major impact on the market. I am still tracking the numbers but will no longer report them on this site.

In place of these numbers I have added something that I think, going forward, will provide more perspective on the market than the reporting of REO do. Continue reading

Lake Oroville Real Estate Market Review

By: Mark Wisterman

My 2013 Photo-Web-Revised

This is starting to get down right boring.

Another slow week in the Lake Oroville real estate market this past week.  Yes, it is true that the number of Oroville homes that sold in the past week is the best it has been in about 5 weeks. But that may be the only semi-bright spot in these numbers.  I say semi-bright because if you look at the average sales price of each Oroville home sale it clearly shows that most of the sales that took place this week in Oroville were very low priced homes that appear to have been snapped up by investors.

Tune in next week for more….hopefully good news! Continue reading

More “Help” For The Market?

By: Mark Wisterman

My 2013 Photo-Web-Revised

 

The number of buyers who are searching for their next home in the Lake Oroville real estate market is about to increase putting further pressure on home prices thanks to FHA.

Under this new program, which runs until September 30, 2016, someone who has lost their home due to an “Economic Event” or has filed for Chapter 7 or Chapter 13 bankruptcy due to an “Economic Event” can qualify for the purchase of a home with an FHA loan in as little as 12 months after the loss of their home or discharge of their bankruptcy.

What is considered an “Economic Event” under the FHA guidelines? According to Mortgagee Letter 2013-26 it is defined this way: Continue reading

Market Activity Update

By: Mark Wisterman

My 2013 Photo-Web-Revised

 

Here is the latest market activity report for the Lake Oroville real estate market.

I apologize that I am not leaving much in the way of comments today. I have a pretty full schedule today that forces me to keep my comments to a minimum.

If there is one number to look at over the past couple of  weeks it is the pending sales numbers at the bottom of the chart. After running in the 80-90 range for the past few weeks it is now below 70 for the past 3 weeks. Look for August closing of Oroville homes to be lower than last year. The overall economy is still facing an uphill battle and the real estate market will continue to reflect this.

 

MLS Stats for Oroville Area Week Ending Week Ending Week Ending % Change
7/18/2013 7/26/2013 8/1/2013 Previous Week
# of Total Sales 9 12 16 33.33%
# REO/Short Sales Sold (SS) 2 5 6 20.00%
% Sales that are REO/SS 22.22% 41.67% 37.50% -10.00%
Avg. List Price $112,156 $180,675 $141,419 -21.73%
Avg. Sold Price $110,622 $170,692 $137,390 -19.51%
Sold Price % of Listing Price 98.63% 94.47% 97.15% 2.83%
Avg. Days On The Market 46 90 49 -45.56%
Total Sales Volume $995,600 $2,048,301 $2,198,237 7.32%
# of Single Family Listings 195 195 183 -6.15%
# Foreclosed On Market 22 25 19 -24.00%
% of Foreclosed on Market 11.28% 12.82% 10.38% -19.02%
# Short Sales on Market 9 8 7 -12.50%
% Short Sales on Market 4.62% 4.10% 3.83% -6.76%
Days of Inventory Left 152 114 80 -29.62%
# of Pending Sales 67 63 65 3.17%