Welcome to my newest video tour for the Lake Oroville area real estate market.
I hope these videos are helpful to all of you looking for a home for sale in the real estate market of Oroville. I always appreciate any feedback you are willing to give me about these Oroville home property videos.
Here is an illustration of how the assessed valuation calculation works when you have been awarded a reduction in your assessment.
We are going to assume the following:
1. Joe Homeowner has just had the assessed valuation on his Lake Oroville home reduced from $300,000 to $225,000
2. For the sake of keeping this discussion as straightforward as possible, Mr. Homeowner will make no improvements to his Lake Oroville home.
3. Over the next 5 years the value of his Lake Oroville home rises 10% per year
Under Prop 13 rules Mr. Homeowner’s assessed valuation, before the reduction can only increase a maximum of 2% per year. Without the reduction, under Prop 13, in the next tax year, Mr. Homeowner’s assessed valuation could be no more than $306,000 ($300,000 + the 2% increase of $6,000).
While still enjoying the benefits of the reduced assessment, the 2% Prop 13 limitation does not apply. In the tax year following the reduction a reassessment is done to reflect the 10% valuation increase. The new assessment becomes $247,500 ($225,000 + 10%).
The following year the assessment will be increased to $272,250 ($247,500 + 10%)
Year 3 will be $299,475 ($272,250 + 10%)
Which now brings us to year 4. And here is the twist:
Notice that the year 3 value is still below the $300,000 pre-reduced assessment. Does this mean that the county can increase the assessment another 10% to $329,423 ($299,475 +10%), or do they assess it at the $300,000 from 3 years ago.
The answer is: Neither.
During the time that the reduced assessment is in place there is a running calculation kept of what the assessed valuation would have been WITHOUT a reduction ever taking place. This is called the Factored Base Year Value. The current assessment cannot exceed this Factored Base Year Value. In our case, the year 4 assessed value can be no more that $324,730. Which is the equivalent to adding 2% per year to Mr. Homeowner’s $300,000 original assessment.
If you are now thoroughly confused, I do not blame you. Here are a couple of websites for you to visit that have more detailed information. But, with values on the rise, it is important for you to know how it will affect you in this regard.
We meet, once again, to review the latest weekly real estate market information for the Lake Oroville real estate market.
The number of Oroville home listings that sold this week continue to show increases as does the average price for Oroville real estate market listings that have sold. With $1.75 million in total sales of Oroville homes listed, this was also an above average week for sales volume.
So what the heck is the cause of all these increases? Take a look at the numbers highlighted in red. The number of homes in the greater Lake Oroville area available for sale continues to shrink. Down over 2.5% from the previous week. It is this number alone, in my opinion, that is driving the rest of the numbers. In my next post I will spend a little time discussing these low inventory numbers and how I think it is going to affect the Oroville, CA real estate market in the short term and what buyer’s and seller’scan do in the face of the changing real estate market in Oroville.
Well, hello again, everyone! It is good to be able to take the time to update you on the real estate market in the Lake Oroville market area.
It has been a very long time since I last provided any meaningful stats on the Lake Oroville real estate market and I hope to be doing this on a much more frequent basis now that we are beginning to see new trends emerge in the number of Oroville homes that have sold as well as the number of Lake Oroville home listings that are currently on the market.
Probably the biggest news when in comes to theOroville real estate market has to due with current inventories of homes available. Since the depths of the market crash we have seen a steadily decreasing number of Oroville homes come to market. When you view the slide show that is included with this post, you will see that the number of homes available was just over 400 in March of 2009. According to our Multiple Listing Database, as of this past Friday, there are now only 150 single family homes for sale in the greater Lake Oroville real estate market. This low inventory is making it extremely difficult on buyers as it causes a little bit of a “feeding frenzy’ whenever a home that is in move-in ready condition comes on the market in that some of the prices get bid up to the point where some buyers can no longer qualify.
You can expect this inventory shortage to continue until values recover to the point where homeowners, who are “underwater” and would like to sell but can’t, finally see that their homes are once again worth more than they owe on them. Barring anything that the government will do to screw things up, we should begin to see more news reports of significantly fewer of these upside down situations in the 2nd half of this year, which should provide the impetus towards an increasing number of Oroville CA homes for sale.
Below is a 4 week chart of the sales in the Lake Oroville CA market and below that is a slide show that provides a little more overview on the current state of the Oroville Ca housing market.
As always, I appreciate your comments and questions.
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
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In the nearly 18 years that I have been actively negotiating on behalf of buyers and sellers in the Lake Oroville real estate market, I have been involved in numerous transactions involving property located in the Kelly Ridge Subdivision.
For those of you unfamiliar with Kelly Ridge, it is a nice community overlooking Lake Oroville and Bidwell Marina; with a 9 hole golf course intertwined among many of the homes. For the most part it is a quiet neighborhood and pride of ownership is evident as you drive through the community’s winding roads.
As with nearly all subdivisions of this nature, there is an active homeowners’ association (HOA) there, as well as a document called Conditions, Covenants, and Restrictions. (CC&R’s) recorded on each lot in the subdivsion. These CC&R’s are basically a set of rules established as a means of insuring a certain conformity among the homes in the subdivision, which in turn protects the integrity of the subdivision and helps in maintaining property values. For example, most CC& R’s that I have read over the years set minimum lot sizes, minimum square footage requirements, prohibit livestock, require that your RV be parked out of view of the street, and so on. For the most part, the CC&R’s in this area are not as restrictive as they are in the more urban areas, but are just restrictive enough to do the job they were intended to do. Continue reading →
Only nine Oroville area property sales this week, however I do expect the numbers to improve over the next two weeks as those escrows that were opened as the original tax credit window of November 30th was closing, should be completed toward the end of the month and into the first week in December.
Of particular note in these numbers is that the number of properties listed for sale continues to decline and has hit a new low since I began reporting Oroville sales to you.
On the foreclsoure and short sale front, we continue to these properties selling at a rate that is far larger than the percentage of these on the market, which will, if nothing changes, make them harder and harder to find.