I stopped by the auction today to see how it was going. The room was actually quite full. I watched for about 30 minutes and took a few notes on what places were selling for to get an idea of how far out of market value current list prices are. Assuming the 'previously valued at' on the price sheets we were given is current list price, I have found that the homes were selling on average around 75% of the previously price. This includes a 5% fee that the auctioneer tacked onto each sale. A hefty profit for the auctioneer considering the work involved!
This was mainly for homes within the portland suburban area but NOT considered downtown. Also, this is not a large or statistically significant (>30) sample. However, it would be enough to influence the amount I would pay for a home in the pdx suburbs. To add creedence to the value, a number of economists seem aligned with this current overvaluation of the market. I've read quite a few who have expected that if people cut prices ~20% the market would pick back up.
Insert Mystifying white space here.
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| Neighborhood | Sq. Ft. | Sold w/ 5% | prev. val | % of prev. val | $/sq.ft. |
|---|---|---|---|---|---|
| hamilton ridge | 2616 | 246750 | 392000 | 62.95% | 94.323 |
| hamilton ridge | 2332 | 246750 | 361950 | 68.17% | 105.81 |
| jcksn hills pII | 3581 | 456750 | 529950 | 86.19% | 127.55 |
| vista heights | 2550 | 346500 | 465950 | 74.36% | 135.88 |
| sunrise hts | 2935 | 367500 | 487950 | 75.32% | 125.21 |
| lincoln hts | 2550 | 341250 | 424950 | 80.30% | 133.82 |
| avg. | 2761 | 334250 | 443792 | 74.55% | 120.43 |
1 comment:
The 'previously valued' is usually the highest price the home was at one time (probably the price the seller paid for it before it foreclosed), so since the makret has been falling the prviously valued price is not an accurate price for what the house would sell for now - especially since foreclosed houses are not usually in perfect condition.
I'm trying to find out if the people who win the bids are having problems with 'subject to seller approval'...meaning is the reserve amount much higher than the starting bid and if you don't meet the reserve do you lose the house?
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