Comments on: Shadow inventory and price declines http://www.foreclosuretruth.com/blog/sean/shadow-inventory-and-price-declines/ Sat, 04 Feb 2012 19:57:02 +0000 hourly 1 http://wordpress.org/?v=3.1 By: pokerstars http://www.foreclosuretruth.com/blog/sean/shadow-inventory-and-price-declines/#comment-183970 pokerstars Tue, 08 Nov 2011 21:09:27 +0000 http://www.foreclosuretruth.com/?p=1197#comment-183970 <strong>pokerstars...</strong> [...]Shadow inventory and price declines | ForeclosureTruth[...]... pokerstars…

[...]Shadow inventory and price declines | ForeclosureTruth[...]…

]]> By: Jacoby http://www.foreclosuretruth.com/blog/sean/shadow-inventory-and-price-declines/#comment-131899 Jacoby Tue, 26 Jul 2011 05:41:16 +0000 http://www.foreclosuretruth.com/?p=1197#comment-131899 Help, I've been ifmnored and I can't become ignorant. Help, I’ve been ifmnored and I can’t become ignorant.

]]> By: Josh in Nashville http://www.foreclosuretruth.com/blog/sean/shadow-inventory-and-price-declines/#comment-48529 Josh in Nashville Fri, 31 Dec 2010 02:10:52 +0000 http://www.foreclosuretruth.com/?p=1197#comment-48529 The most recent report from NAR is that the shadow inventory is roughly 2.4 million which might be low in my opinion as there are over 130 mil. households in the U.S. If this data is correct it might not be as horrible as it is only roughly 2% of the countys homes. The most recent report from NAR is that the shadow inventory is roughly 2.4 million which might be low in my opinion as there are over 130 mil. households in the U.S. If this data is correct it might not be as horrible as it is only roughly 2% of the countys homes.

]]> By: Richard http://www.foreclosuretruth.com/blog/sean/shadow-inventory-and-price-declines/#comment-35797 Richard Sat, 13 Nov 2010 17:14:07 +0000 http://www.foreclosuretruth.com/?p=1197#comment-35797 Sean, You make many good points again! When I do valuations (BPOs) for lenders I split up the market into three seperate slices including normal Equity Sales, REO and Short Sales. In my market there are very limited Equity and REO sales and these prices are going UP. Short Sales are abundant, often don't close and are discounted to attract buyers. I haven't seen any reports on prices seperated out like this. Short Sale levels have more negative impact on prices as REO if not more! A lack of REO and normal inventory and a high level of Short Sale activity is driving prices right now and no one has figured that out. We Listing Brokers continue to see REO sell in a week with multiple offers for more than full price! Richard Sean,

You make many good points again! When I do valuations (BPOs) for lenders I split up the market into three seperate slices including normal Equity Sales, REO and Short Sales. In my market there are very limited Equity and REO sales and these prices are going UP. Short Sales are abundant, often don’t close and are discounted to attract buyers.

I haven’t seen any reports on prices seperated out like this. Short Sale levels have more negative impact on prices as REO if not more!

A lack of REO and normal inventory and a high level of Short Sale activity is driving prices right now and no one has figured that out. We Listing Brokers continue to see REO sell in a week with multiple offers for more than full price!

Richard

]]> By: Darius Wells http://www.foreclosuretruth.com/blog/sean/shadow-inventory-and-price-declines/#comment-9659 Darius Wells Sun, 09 May 2010 23:26:55 +0000 http://www.foreclosuretruth.com/?p=1197#comment-9659 The home was just so overpriced in California, that most of the home buyers had to get a interest only loan just to be able to afford the payments. California is not going to stop seeing big foreclosure until the lenders or the government help with principal balance reduction. A Loan Modification will only be a short time resolution, which homeowners will still re default in the future. The home was just so overpriced in California, that most of the home buyers had to get a interest only loan just to be able to afford the payments. California is not going to stop seeing big foreclosure until the lenders or the government help with principal balance reduction. A Loan Modification will only be a short time resolution, which homeowners will still re default in the future.

]]> By: Will There Be a Costa Mesa Short Sale Shadow? « COSTA MESA SHORT SALES http://www.foreclosuretruth.com/blog/sean/shadow-inventory-and-price-declines/#comment-9441 Will There Be a Costa Mesa Short Sale Shadow? « COSTA MESA SHORT SALES Tue, 04 May 2010 23:08:36 +0000 http://www.foreclosuretruth.com/?p=1197#comment-9441 [...] about the possibility of a Costa Mesa short sale shadow? Sean O’Toole with Foreclosure Radar points out that there is still a heavy backlog of distressed mortgages. If these homes are unable to [...] [...] about the possibility of a Costa Mesa short sale shadow? Sean O’Toole with Foreclosure Radar points out that there is still a heavy backlog of distressed mortgages. If these homes are unable to [...]

]]> By: Toni Dalrymple http://www.foreclosuretruth.com/blog/sean/shadow-inventory-and-price-declines/#comment-8488 Toni Dalrymple Fri, 16 Apr 2010 15:03:28 +0000 http://www.foreclosuretruth.com/?p=1197#comment-8488 Great Statistics. California has all kinds of micro-markets. Bottom line is that in some communities the home prices are at or close to the cost to build point. With these communities being close to business cities I think that these are key places to invest. The prices are not going to fall much more and when jobs return so will the commuters and the home prices. Great Statistics. California has all kinds of micro-markets. Bottom line is that in some communities the home prices are at or close to the cost to build point. With these communities being close to business cities I think that these are key places to invest. The prices are not going to fall much more and when jobs return so will the commuters and the home prices.

]]> By: Shelley http://www.foreclosuretruth.com/blog/sean/shadow-inventory-and-price-declines/#comment-7381 Shelley Tue, 23 Mar 2010 18:22:50 +0000 http://www.foreclosuretruth.com/?p=1197#comment-7381 I would love to see statistics showing purchase price and average income per zip code. I think this would be a very good indicator of "who" can afford the prices. Regardless of the amount of homes that are trickled out or held back, if homes are not priced to match the economic environment, they will sit there. This can see this very clearly on the MLS for homes above say $600.000. I would love to see statistics showing purchase price and average income per zip code. I think this would be a very good indicator of “who” can afford the prices. Regardless of the amount of homes that are trickled out or held back, if homes are not priced to match the economic environment, they will sit there. This can see this very clearly on the MLS for homes above say $600.000.

]]> By: Shadow Inventory, to stay a while? | Build Bankroll http://www.foreclosuretruth.com/blog/sean/shadow-inventory-and-price-declines/#comment-7041 Shadow Inventory, to stay a while? | Build Bankroll Tue, 16 Mar 2010 21:09:03 +0000 http://www.foreclosuretruth.com/?p=1197#comment-7041 [...] no responses Sean O’Toole is the creator of Foreclosure Radar and just published a very interesting article on his blog. Here in CA we have one million homeowners who are already delinquent, and we seem to [...] [...] no responses Sean O’Toole is the creator of Foreclosure Radar and just published a very interesting article on his blog. Here in CA we have one million homeowners who are already delinquent, and we seem to [...]

]]> By: Tracy King http://www.foreclosuretruth.com/blog/sean/shadow-inventory-and-price-declines/#comment-7034 Tracy King Tue, 16 Mar 2010 18:52:19 +0000 http://www.foreclosuretruth.com/?p=1197#comment-7034 I completely agree with you that the decline of prices is causing foreclosures. And it's affecting many more than those that bought with the crazy loan products. I have talked to many people who bought with 20% down or had refinanced with 80% loan to value, but the downturn in the economy first wiped out their equity and then cost them their jobs, making them unable to continue to make payments that they had formerly been able to afford. If they can't manage to negotiate a loan modification (and does anyone know anyone who has?), they are fodder for the foreclosure mill. But in our Northeast Los Angeles and San Gabriel valley markets, the inventory has been so low that any decent property that is well priced is going in multiple offers. Smart REO owners drip their foreclosures into the market and get better prices than they would have if they had dumped them on the market in a pile as everyone keeps saying they will. Why would they? They are not that stupid. Also, I see a number of properties in Eagle Rock that are scheduled to go to Trustee's Sale and they have been on and off the schedule for the last couple of years. Some of these people might be able to sell for enough to pay off their mortgage if they can hang on a few more years. Or sell short in this more favorable environment. At this rate, they might pull it off. I completely agree with you that the decline of prices is causing foreclosures. And it’s affecting many more than those that bought with the crazy loan products. I have talked to many people who bought with 20% down or had refinanced with 80% loan to value, but the downturn in the economy first wiped out their equity and then cost them their jobs, making them unable to continue to make payments that they had formerly been able to afford. If they can’t manage to negotiate a loan modification (and does anyone know anyone who has?), they are fodder for the foreclosure mill.
But in our Northeast Los Angeles and San Gabriel valley markets, the inventory has been so low that any decent property that is well priced is going in multiple offers. Smart REO owners drip their foreclosures into the market and get better prices than they would have if they had dumped them on the market in a pile as everyone keeps saying they will. Why would they? They are not that stupid.
Also, I see a number of properties in Eagle Rock that are scheduled to go to Trustee’s Sale and they have been on and off the schedule for the last couple of years. Some of these people might be able to sell for enough to pay off their mortgage if they can hang on a few more years. Or sell short in this more favorable environment. At this rate, they might pull it off.

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