A Wave of Sacramento Foreclosures Are Coming to the Market in October

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.