In my part of the country, many professionals are speculating that we are a year or so off on hitting the bottom. Every time it seems that things are starting to get better, another wave of foreclosures hit the market extending the inventory from 11 months to 15 or more. In Stockton, national figures assume that 1 in 30 homes are bank owned. That is just under 4 times the national average. There were almost 1000 homes put up for auction last month in Modesto, alone.
With almost every home being listed in some state of foreclosure or being a short sale, it is very rare to see active listings that are not bank owned. However there are signs that we are nearing the bottom. Investors are starting to enter the market and are buying homes at low prices. There are bidding wars for REO properties, above asking price. In fact, the majority of homes that are listed are now selling above the asking price. These signs show that a bottom is going to be occurring in the California region in the near future. The big question is when will this happen? My guess is within the next year, but I also realize that many parts of the country it could be years down the road.
Even with the wave of foreclosures, properties are selling quickly and there is renewed hope that a bottom will be here soon.
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good post...there are great deals now in Las Vegas...I think another year and prices will start going back up...send me your referrals...thanks
I think in our area we are starting to see the bottom. The market is picking up, I hope it isn't a fluke.
Our rental market has picked up because so many people have poor credit due to short sales and foreclosures. I continue to be amazed.
I'm not sure we've hit the bottom - more that we have entered a longer term cycle with longer selling times and less buyers.
Things are still selling but not as fast -
We are starting to see where bidding wars are the norm, almost like it was in the sellers market.
Matt, great points. Some of the predictions I am seeing point to middle to end of next year before we are out of the mud. The smart investors are buying now.
Matthew, We are seeing the same thing here in Las Vegas. I think we are definitely hitting the bottom!
I always say that you never know when bottom has hit until you are looking at it in the rear view mirror!