A Different Look At The Market

By: Mark Wisterman

My 2013 Photo-Web-Revised

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 Oroville real 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.

Inventory Chart

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Where Have All The Homes Gone?

By: Mark Wisterman

Sellers in the Lake Oroville real estate market, as well as those in the Paradise, Chico, and other Butte County real estate markets, are currently experiencing the makings of a perfect storm for home prices.

Buyers finally jumping off the fence to take advantage of the low government suppressed interest rates and the increased affordability brought on by an over-correction in housing values, are finding difficulties in having a home because inventories of homes for sale continues to shrink.  Fewer foreclosures coming to market and potential home sellers who can’t sell  because they owe more that their home is worth on the open market, are providing plenty of opportunities for current sellers to stand firm on their pricing.

I invite you to watch my latest vlog post for my take on the whole situation. And, as always, I welcome your comments. Especially yours, Eric!




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