Steven Keefe, Broker/Owner
Coldwell Banker Sky Ridge Realty 
Arrowhead Home Loans, Inc.
www.mountainmoves.com
steve@mountainupdate.com
909.336.2131
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
$125,000 to $200,000 |
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.
