I sort of feel like a modern day Paul Revere. As though I should lower the top on my car and go racing throughout Sacramento with a bullhorn screaming, "The foreclosures are coming, the foreclosures are coming." But why? Why, when I can write a blog about it instead?
REO agents in my office have reported an uptick in foreclosure listings. They are busy cleaning out the trash from these homes and preparing them for sale. Our FAX machines are buzzing, paperwork is flying.
Could it be that after waiting for months and months, pecking like a starving chicken through limited inventory, our Sacramento home buyers will finally have more choices available to them? Certainly looks that way.
When you think about it, why wouldn't the banks put some of those foreclosures on the market right now? What better time of the year to do it? The first-time home buyer tax credit goes away at the end of November. Given the holidays coming up, that means buyers have about 2 months to close escrow if they want to collect their tax-free money from the government.
If the banks want top-dollar, now is the time. There is a wild and crazy feeding frenzy happening in the Sacramento real estate market for entry-level homes. Not to mention, everybody knows that the banks have been hoarding inventory and manipulating the market for too long.
Will releasing a flood of foreclosures for sale depress prices? I know that's what you're wondering. Probably not between now and November. After that, though, is another story. If I were in charge of a bank, I'd release just enough homes to meet demand. In any case, it's going to be a bumpy ride. Fasten your seat belts.
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
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Elizabeth: You and I must be on the same wavelength today, sort of. You're talking about properties the banks already possess. I'm blogging today about why everyone assumes that adjusting loans will be foreclosures. Why not short sales?
Elizabeth, I feel more like the boy who cried wolf! We've been telling our buyers the foreclosures are coming for months now! I hope you're right and in October we'll begin to see them! I've got my seat belt fastened and I'm ready to go!
Elizabeth,
I have noticed a distinct upward trend in the number of MLS daily new listings in the last 30 days - I suspect you have seen it too. This should help a few more of our Sacramento first time buyers close in time to use the tax credit.
The REO agent in my office is working her tail off right now too. In fact at this moment she is meeting a well company to get a water supply line repaired so we can have an inspection later today. Numbers are up, and those are the listings that are selling like hotcakes right now.
Around here, it is starting to affect the higher end properties as well, more and more.
With your inventory low this could be a perfect time for the banks to get some of the properties sold before the end of the year.
I had suspected that it would get a bit bumpy with the foreclosures once the 4 month moratorium which began in July, ended. I'm hopeful that banks release just enough homes to meet demand, as you say. . .I guess we'll need to wait and see.
REO is crazy in lots of markets...best to get moooving here before the snow flies...I know you miss it !
Hi Elizabeth, I have been predicting for months that Oct/Nov would bring a new wave after the tremendous job losses in Q1 of this year.
Well, we've heard that they are coming, but have not seen much evidence of that yet in San Diego County. Maybe the "red coats" are moving from north to south?