My intent today was to report the weekly sales of the Lake Oroville real estate market to you for last week.
But during my number crunching I realized that it has been a while since I had updated my charts that I have been using to track the monthly and annual Lake Oroville home sales.
After updating these charts I noticed an interesting long term trend in one of the charts that I thought you needed to see. From past blog posts, you all know that I do not take the month to month numbers that are released into the media on an ongoing basis as important as what has happened over longer periods of time. I think the media is far too focused on what this month did compared to that month, which in turn has focused the consumer on the very same thing. This narrow focus is what I believe is going to cause many buyers to miss the great opportunities that currently abound in the marketplace as far as prices and interest rates are concerned.
Now before you get excited, thinking this is another one of those real estate blogs posts that tells you to BUY NOW!!!!, let me tell that it is not. This market is going to provide great buying opportunities, for those of you that still have jobs in this economy, for the foreseeable future. What I am telling you is to look at this chart and see for yourself what this Lake Oroville real estate market is whispering to you. When looking at a chart like this most people look at the peaks to see how high things have gone. What I suggest that you look at here is the lower side of this chart. The former stock broker in me says ignore what is happening in the high side and pay close attention to what is happening on the low side. In the stock broker world a stock that showed a trend of higher lows was one to pay attention to and was a good signal that the stock was poised to move to higher highs. (Click Here or on the Chart to Enlarge)
As indicated on this chart, the number of homes sold on a monthly basis in the Lake Oroville real estate market have been setting higher overall lows since 2008. The indication here is that, as far as the number of Oroville homes sold is concerned, the worst appears to be over and if this trend continues we will eventually begin selling units at a higher pace than the pace at which new listings are coming to market. It will be this difference between supply and demand that will result in an increase in values and prices. Let’s be clear here. We have a LONG way to go before any appreciable change in prices and values. The current state of our local, state, and national economies are now the main cause of the drag on the market. Unemployment has now surpassed the loan scandals of the past few years as the culprit for this ugly market.
Hopefully, information like this will keep you from being surprised while thinks SLOOOOOOOOWWWWWLLLLLLY gets better.