A couple of days behind schedule for this post, but I wanted to get the month-end sales figures for our market area included. We'll do those first, and keep in mind that these are only mls reported sales and do not include any private transactions or non-member real estate agent transactions. Single family residences: Greater Chico area, 80 recorded sales, 74% of 8/2005; Glenn County, 10 recorded sales, 42% of 8/2005; Paradise, 25 recorded sales, 63% of 8/2005; Magalia, 10 recorded sales, 50% of 8/2005. We'll have to continue guessing together what this really means, simply a return to normalcy or a genuine slump. What makes it look really bad is the huge inventory on the market. My opinion holds on the reason for that, simply a great number of people fearing that they've missed cashing out on the substantial value run-up of the recent past and reluctant to face a new reality. The market is not nearly as bad as the media would have you believe, but normal doesn't make exciting TV or sell newspapers. Interest rates on the 10 year treasury notes, the touchstone for the mortgage industry, hit a 5 month low today. In other words, mortgage interest is very good indeed and favors a buying decision. Some of our prospective buyers share with us their opinion that house values are going to decline. How they know this when those of us in the business with a ton of data available don't have a clue what the future holds is beyond me. I do know though that conventional wisdom holds that when the general population thinks something is going to happen, e.g. to stock prices, commodity prices, etc., generally it already has. Bottom line in all the viewing with alarm that you see and hear; if you want or need to buy a home, do it; if you want or need to sell your home, price it realistically and it will be sold. Whatever the figures and percentages outlined above may say to you, the essential message is that 125 homes listed on the mls changed hands in just a segment of our market area, and probably a great many more that are recorded privately.
Since we introduced our cash back to buyers program we've had a bit of attention from our competition. Essentially they think we're not playing fair. That of course is true if they're considering their interest. Considering our client's interest however we're not only fair but downright generous. We keep saying the same thing, percentages of home value have no relevance in computing a fair commission for the professional marketing and sale of residential property. There have been some moves to prevent us from doing what we're doing, right up to the brink of conspiring in restraint of trade. That's department of justice talk for attempts to limit your choices in choosing representation. Many of these folks are purely money driven without regard for client interests, and they fear that if you discover you can do better for yourself with alternative programs you will choose the alternative. We think you should have all kinds of choices. We're only one of them. We really hope that you find our web site helpful and informative. We've provided access to home valuation right on site, access to all mls properties in our area, a link to a source of information if you want to go it alone, and phone numbers we hope you'll be comfortable using if you simply want to talk to someone in real estate.
This has gone on long enough. Next week I want to talk a little about the original purpose of the mls, and the NAR (National Association of Realtors), and the current state of affairs.