Oct
The Best Kept Secret in the Real Estate Market Today
Houses are Selling and Inventory is very Low! Multiple offers abound and Firstime Buyers as well as Seasoned Investors are buying homes in record numbers.
Yes it is true in most area markets! The funny thing is everytime I find myself in a social setting and the subject comes up I make this statement in response to inquiries about my personal Real Estate business. The typical “How are you doing out there?” from those who know I recently made a move back to resale from new home sales… or “sold any homes? The market’s really slow, nothing is selling” even from some clients thinking of selling! This perception tells me that the news that homes are selling has some how been lost in translation. Read the articles, watch the TV news reports, follow the closings published in the paper and you will see sales are happening! Granted, the prices are low, very low in some cases( I suspect the reason for the denial) and most of the homes selling are bank owned properties (REO) or Short Sales (sold for price lower than indebtedness). So once I push forth this point in conversation, the next question is usually something like “what about all these foreclosures” or “I see lots of sale signs that have been up for months and months in my neighborhood, what about those?” A very good question! Many homes are in some state of foreclosure which is a shame because upside down sellers have quite a few options these days. But the vacant homes you see sitting there forever are likely victims of the new foreclosure regulations that require a complicated process before the bank to proceed with taking back the home and frankly many banks are just as confused as their customers are over the whole issue.
However, there are some banks that have their act together and have a great REO & Shortsale department that is swiftly moving their homes to the marketand getting them sold. Wachovia is one of those that seems to have a handle on the situation. I recently attended an educational meeting with the Short Sale Manager from Wachovia (yes we in the Central Valley have a local Short Sale Manager who lives and breathes!) He stated that Wachovia is holding over 130 Billion dollars worth of their portfolio “Pick a Pay” type loans, these were popular back in the hey day because of the low payment option. Of these loans some 60% are here in the Central Valley and guess what? 20% of those are in some state of delinquency! That is why they are so proactive in helping their clients with loan Modifications or Short Sales. (Wachovia customers…”come out come out where ever you are”)
But speaking of Short Sales and back to our topic…Many of the homes that appear to be sitting on the market with FOR SALE signs in the yard FOREVER are actually short sales(we call ’em Long Sales!) that have offers on them that are awaiting bank approval, meanwhile the foreclosure clock is usuallt ticking too as the banks drag their heels deciding to accept less. So its a silly situation that is complicated by many factors however these things are true; Homes are selling. Prices are good. Interest rates are GREAT!! Inventory is very low so expect multiple offers. Best of all more homes will be coming to the market as this situation develops and the foreclosures and short sales shake loose.
Great information, and believe me I know first hand how quickly Wachovia moves on the short sale side. They actually closed our hom in less than 30 days! So How do I get on your email list so I know when you blog? And I JUST got the “sort of word” today… So is PMZ in Ripon looking for any Agents?
This is an excellent way to explain our current market. It is a great time to buy a home but you’ve got to be working with a professional who knows the ropes and is willing to give you guidance, such as Lori Adams. Thank you Lori for your input. The time is right to jump in do not get discouraged with the process, pick your PMZ Realtor and get going!