I did some analysis for an agent this morning March 9, 2009 on the Running Springs market. These figures are for properties priced between $125,000 and $200,000. This data was as reported to Rim Association of Realtors.
Price Range Running Springs
Active Listings Normal Seller 12 Bank Owned 5 Known Short Sale 4 Total 21
$125,000 to $150,000 7 $150,000 to $175,000 6 $175,000 to $200,000 8
Properties Currently In Escrow Normal Seller 0 Bank Owned 2 Known Short Sale 0 Total 2
Sold Last 90 Days Normal Seller 1 Bank Owned 5 Known Short Sale 1 Total 7
$125,000 to $150,000 4 $150,000 to $175,000 2 $175,000 to $200,000 1
The 2 Properties Currently Under Contract 31459 Firwood Listed for $128,900 last sold in July 06 for $312,000 31447 Cedarwood Listed for $184,900 last sold in Jan 02 for $239,500
Sold Properties Last 90 Days 2697 Canon Sold $132,500 Last Sold Data Not Available 31661 Wagon Wheel Sold $139,950 Last Sold Data Not Available 2655 Viking Sold $144,900 Last Sold Oct 03 for $$225,000 30874 Live Oak Sold $95,000 Last Sold Feb 07 for $265,000 2784 Snow Flower Sold $152,500 Last Sold Jun 04 for $175,000 31654 Silver Spruce Sold $181,000 Last Sold Nov 05 for $280,000 31967 Pine Cone Sold $165,000 Last Sold Aug 04 for $180,000
What does all of this mean?
First the only thing that is selling in the current market environment is "deals" property must be priced below the market value to sell. There are currently 21 properties listed for sale in this range. Only 7 sales in 90 days that is 2.3 per month. There are currently 2 in escrow. Only 1/3 of the listed inventory will sell. The rest will not sell. Not selling is not an option for the bank owned properties so they will continue to price as they have to make sure that the available buyers gravitate to them because of value.
If you look at the property under contract (pending), one is listed for 40% of what it last sold for and one is listed for 75% of what it last sold for.
If you look at the property that has sold and has closed escrow on average they have sold for 30% less then when the were purchased. If you go by that model, likely sales price for your clients property under the current conditions is in the $130k range. Obviously this is bad news for them, but this is what the current market is telling us.
As I see it...There are three options for your client.
Option 1 Wait it out if they can. No one knows for sure, but it is likely that based upon the inventory of REO properties in the pipeline, it may take up to 24 more months for us to flush them out. Until this happens, or we see a marked increase in buyer activity, values will continue to be affected.
Option 2 Let the property go. Many are opting for this option as they don't see the light at the end of the tunnel and can't continue to pour money into the property.
Option 3 Negotiate a short sale, where the lender will negotiate with them the payoff. It appears that based upon my research, if the property sold at the asking price, the owner would likely be upside down. If this is the case, this may be a good option for them to get rid of the property, and minimize the impact to them. If they would like to discuss this option, I would be happy to talk with them and you to show them what we can do to assist them.
$125,000 to $200,000
Lake Arrowhead, CA Coldwell Banker - Lake Arrowhead, CA
Lake Arrowhead Realtor - BRE#01412099 - Lake Arrow
Great information. Running Springs definitely has some great deals going on, but what I have experienced over the last two months is multiple offers...
Mar 10, 2009 09:47 AM
Crye-Leike Realtors® - Rogers, AR
Crye-Leike Realtors®
Hi Steven, I hope things are going well for you and you find the time to come back and play in the Rain.
Oct 31, 2011 04:32 AM
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