The sleepy real estate market in the Lake Oroville area continues to hit the “snooze” alarm as the market seems to be sleep walking through yet another month.
When a market turns as this one has over the past few weeks some may think that the buyers are beginning to leave the market. If the recent activity in our office is any indication what is going on in overall home sales activity in the Oroville real estate market, that thinking would be incorrect. For example, I have shown more buyers Oroville homes for sale in the past couple weeks than I have at any other time this year. The buyers are not sitting on the sidelines worrying about interest rate increases. The fact is that Oroville buyers are now shopping more cautiously, and are beginning to consider the actual value of the homes at which they are looking, not wanting to overpay for their next home.
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.
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
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.
Home sales for the Lake Orovillereal estate market had somewhat of a breakout week this past week as there were significant improvements in the major valuations area of the data.
In addition to big increases in the average list price and the average sold price of the Oroville homes that sold this week, there was a doubling of the total sales volume of homes that closed escrow this week. The sale of distressed homes in the Oroville real estate market (those that are bank owned or were sold for less than was owed on them) continues to hold at levels that have not been seem since the depths of the mortgage mess.
Inventories of Lake Oroville area homes for sale continue to be constrained which seems to be causing, for lack of a better term, a mini-frenzy among Oroville home buyers who seem to think that there will never be any other Oroville homes on the market and have allowed themselves, often with the prodding of their agent, to get sucked into the unenviable position of having to engage in auctioneering to buy a home. In an upcoming post I will give you my take on why I have a concern that there may be a mini-bubble developing in the market right now.
I recently had cause to discuss an issue with the City of Oroville Housing Department regarding whether or not a particular home located within the city limits of the Lake Oroville real estate market could be approved to be sold to the first time home-buyer that I am representing.
Without getting into the minutia of the issue, the Housing Department originally said that my client would not be able to purchase the home based on the current guidelines that were established within the grant program that is being used to fund the loans for first time home buyers that are purchasing homes within the city limits of the Lake Oroville real estate market.
In my view, the guideline that they were using was one that was very subjective and open to broad interpretation. In discussing this issue with the housing department over a three day period I think I talked to nearly everyone in the department.
I talked to Dawn, Tiffany, Vanessa, and Pat during this time and to be totally honest I thought I was going to get the proverbial government runaround that normally comes in dealing with “policy.”
Well I was wrong. That’s right….wrong!
Each of these public servants listened to my concerns and my position with an open mind and in the end understood that the guideline was in fact extremely subjective and worked diligently to do the right thing for my client , as well as for future users of the First Time Home Buyer Loan Program, of which many in the Lake Oroville real estate market have availed themselves.
The postition that these ladies are in cannot always be an enjoyable job. Dealing with REALTORS®, lenders and first time home buyers while trying to keep up with, and communciate, the many changes that occur in the grant programs that make the loan programs possible has got to be quite a challenge.
A big thank you to Pat Clark, the Director of Business Assistance and Housing Development, and the entire staff in the department for their help. It is refreshing to see that common sense and fairness are alive and well in the halls of our city in the Lake Oroville real estate market.