I know that as of the posting of this blog the month of August is not quite done yet.
But I hereby make a motion to put the memory of this month’s Lake Oroville real estate market sales numbers behind us and never look back again!
With another paltry week of Oroville real estate sales in the books and with just a very few sales yet to be logged into the Oroville area multiple listing service, the number of Oroville homes that sold this month will be the fewest number of homes sold in nearly 4 years. Yes, you read that correctly, not since Nov. 2009 has the pace of Oroville area home sales been this slow.
Although interest rates are still extremely low, the recent increase in the rates coupled with the lack of reasonably priced homes has apparently caused a pause in buyer demand.
There are however, a couple of bright spots in this weeks Oroville area home sales data. Continue reading →
Sorry for being a few days late with last week’s sales information for the Lake Oroville real estate market.
I got caught up in “reporting” on the current fire situation in the foothill area just outside Oroville. What turned out to be taking a few photos of the fire turned into an hourly Facebook posting with updates from CAL-FIRE which took up most of my weekend.
In any event, here are the numbers for the week. One of the biggest challenges with reporting the Lake Oroville real estate market activity is that we are a fairly small market. As a result the weekly numbers have a tendency to be somewhat volatile making it difficult to really get a feel for what is going on.
As we have discussed here many times before , the week to week, or month to month, or even the year over year numbers tell only a small part of the story of the market. In my view, it is the TREND that is important to watch when attempting to gauge the market. To help you spot how things are trending in the Lake Oroville home sales market, Continue reading →
Well, well, well what do we have here in the Lake Oroville area? The end of the Oroville foreclosure market?
Looking at this week’s home sales data for the Greater Oroville area you might draw such a conclusion being there was not ONE foreclosed property that sold in the past week. (see the red highlighted stat). To bolster your conclusion you may also point to the fact that this is the first week since I have been tracking this number dating back to October 2009 that there has not been at least one bank-owned Oroville home that has sold.
As I prepared to share this week’s Oroville real estate information with you my plan was to caution you that we should certainly expect to see more foreclosure sales take place and that it is a little early to say the foreclosure market in the Oroville area has met with extinction. However, as I was typing the first paragraph of this weekly editorial, and because I am such a great multitasker, I began think that I may be…..yes, wrong!
Maybe the “foreclosure market” IS over! Oh sure, there are still bank-owned homes for sale, but does the current inventory of Oroville bank-owned homes (19 homes, or less than 10% of the available inventory) actually constitute a “market?” I wonder?
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 Orovillereal 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.
Here are the numbers for the Lake Oroville real estate market for the week ending 6/6/2013.
If you only look at the percentage change from the previous week you would think the Oroville market was crashing. But, fear not. It looks like that we just cleared up some inventory of homes that had been on the market for what now is an unusually long amount of time. Most of what sold was REALLY distressed property that would not qualify for any type of institutional loan, and, that I am guessing, investors picked up with cash purchases.
Last week was the first week in a LONG LONG time that bank-owned homes for sale in the Oroville real estate market numbered in the single digits. There were only 9, that’s right NINE, bank owned homes on the greater Oroville real estate market when I ran the report. Not having begun tracking this number until 2009, which was the depths of the Oroville real estate market downturn, I don’t have any data to support what a “normal” level of Oroville bank owned propertieson the market should be. But, if this trend continues I would speculate that by the end of the year, or the first part of 2014, these REO properties will be a non-issue. The wildcard is whether or not there actually is the dreaded “Shadow Inventory” lurking around the corner.
MLS Stats for Oroville Area
# of Total Sales
# REO/Short Sales Sold (SS)
% Sales that are REO/SS
Avg. List Price
Avg. Sold Price
Sold Price % of Listing Price
Avg. Days On The Market
Total Sales Volume
# of Single Family Listings
# Foreclosed On Market
% of Foreclosed on Market
# Short Sales on Market
% Short Sales on Market
Days of Inventory Left
# of Pending Sales
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
I know, I know, I can’t keep calling it the weekly Lake Oroville housing report if I don’t actually report WEEKLY. So, my phrase of the day is: Better late than never.
On the whole, there is not anything too earth-shattering in the Oroville real estate numbers over the past couple of weeks. Unit sales are remaining fairly steady and the inventory of homes for sale in the Oroville marketis sustaining the low levels that we have seen for a few months now. Oroville buyers are still having a tough time dealing with these low inventories in the face of rapidly rising interest rates, while sellers continue to hold back from listing their homes for sale waiting for the marketvalues to climb higher.
Here is a short slide show recapping the activity in the Lake Oroville real estate market for the month of April 2013.
The number of homes that were sold in the months of March and April are the two largest back to back monthly sales of Oroville homes since I have been tracking monthly sales dating back to October 2005. However, there has been a noticeable slowdown of closed sales so far during the month of May. Lack of inventory appears to be threatening to slow the sale of Lake Oroville homes for sale. As usual I will keep an eye on the market and continue to keep you informed of any trends that develop.
Here we are once again, meeting to review the past week’s market activity of Oroville home sales in the Lake Oroville real estate market.
There is not much out of the ordinary to report this week. The only interesting statistic in this chart concerns the number “distressed” sales (bank owned or short sales) that have taken place 2 of the last 3 weeks. With only one of these sales last week and just 2 of them 2 weeks ago it will be interesting going forward to see if this is an early sign of a trend developing in the sale of Oroville homesor if it is just a temporary slowdown. The next few weeks will tell.
In a recent post on our office Facebook page at http://www.facebook.com/RealtyWorld.CA I commented about the perception some buyers, and quite frankly their agents, have about prices in today’s Lake Oroville real estate market. The comment being that there is no factual basis for anyone to make a blanket statement that everything is selling for more that asking price. In fact for the 4 years that I have been tracking Oroville home sales there have been only 4 weeks where the average sales price has exceeded the average listing price. And not one, I repeat, NOT ONE of those weeks has occurred in 2013. In fact, the average sales price to listing price ratio is pretty much within historic norms. That is certainly not to say that some homes have not sold for more that asking price, because they have. My point here is that, as a buyer in the Oroville real estate market, you need to be sure you are fully informed about what the market is actually doing. It is easy to get sucked into the real estate hype. But do not feel bad if you do because many who work in the industry get sucked into it to. The reason: They do not take time to actually look at the numbers.
Lucky for you, you have this Lake Oroville real estate market blog site to help you stay on top of the numbers.
I call this video feature “Mark’s Real Estate Minute (or 2). Why the “or 2?” Because I have quickly found that I talk to darned much and there is NO WAY that I will every be able to limit these spots to 1 minute!!!! The latest and greatest of these spots will always be on the sidebar of this site for easy access.
I will periodically produce these spots to provide my perspective and advice on a wide array of topics including those you may like to hear about. A lot of changes are once again taking place in the Oroville real estate market and I think it is absolutely essential that you have as much information about Oroville market conditions, as well as market conditions in the greater Butte County real estate market area.
As the old saying goes, “Information is Power.” And this is exactly what I want to provide to you; the power to make the right decision regarding your real estate needs. It is my hope that I can pack enough info into each one of these ‘minutes’ to make a difference.
To make this little corner of this blog site work I am going to need your help. Please e-mail or text or IM me at my Facebook page with any questions or topics that you would like to have addressed.
It is time, once again, for everyone living in and visiting the Lake Oroville real estate market to take time out from the hustle and bustle of their busy lives to enjoy the community celebration know as Feather Fiesta Days.
With the centerpiece of the festivities being the 66th annual Fiesta Days Parade of May 11, 2013, the City traditionally turns out in huge numbers to partake of the many venues of entertainment that have become part of the fabric of our community.