REO's, Short Sales and Pre-foreclosures rule in So Cal!
Submitted by Noel_The Realtor on Thu, 05/01/2008 - 10:50pm.
Just like to see if my impression of the market is correct and get a few people sharing their thoughts and perceptions of the market in there areas.
Here in the general Whittier - Norwalk - La Mirada area of SoCal the REO's, short sales and Pre-foreclosures are setting market prices for all sales. Not that there is much sales activity in the area. We're down about 55% overall in the last 18 months. But as I do BPO for lenders they get a shock when I tell them that market values are being set not by normal market forces, i.e., homeowners selling their homes, but rather by REO's and Short sales. So my question to all of you in every part of SoCal, Central and NorCal is...... are the REO's setting market values where you live??
Noel
Comments:
Yes! I am in the Sacramento/Roseville market of Northern California.The Reos and short sales are over 50% of the solds in this area. Buyers in our market are looking for "the best deal" and by far REO's and short sales are it.
When I do BPO's for the banks that is the same thing we are finding. REO's here are getting multiple offers and owner occupied homes are sitting for months. (Until they get closer to the REO prices then they sell)
Same thing here, I'm in Apple Valley, in the area known as the High Desert, an hour north of San Bernardino. The last stats available show that 71% of all home sold here were bank-owned. To find a home that is not a bank-owned property or short sale on the market, its like looking for a needle in a haystack.
I'm a broker from the Monterey Peninsula and yes, REOs and SSs are setting prices but only in the entry-level communities.
The high-end areas are holding their own but there are a few FCs and REOs coming aboard. It will be interesting to see where year-end sale averages will end up in those areas.
By the way, our overall sold units are still strong. Not like the years before but way better than nothing!!! Things are looking up. Down with the doomers and gloomers. This is a great market!!
James Frangella
In South Orange County, CA -- same thing -- Short Sales and Bank Owned are creating the market. However, as James commented, this is not so in higher end areas. Where there were high concentration of 100% subprime there is a high concentration of SS and REO...
BOB
In Anaheim/Santa Ana about 75% of the homes offered for sale are short sale or bank owned. In Irvine, San Clemente, Laguna Niguel it is about 25% - If I ever get more time, I will publish these by city in Orange County. So, it depend on where the property is located. I do BPO's and some are REO/short sale driven and other areas, sometimes, 1-2 miles away are not dominated by distress... When I find 1 or 2 relevant REO/Short sale comps, I weigh on the non-distress. When I find 5-6 distressed, I BPO price to the distressed price.
BOB
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