I work in a different State, California to be exact. I agree with your feelings that 17% is too low. We are an Appraisal Firm, and our most recent statistical analysis for Red Bluff, California indicates that 60% of the recent sales are REOs. Since we have a smaller MLS I took the time to analyze the individual listings one-by-one to find a trustworthy ratio.
I would not be surprised to find that your ratio may be somewhat less than ours but certainly greater that 17%.
At this time it is typical that the lenders are foreclosing at 100% of their loan + charges but actually selling for about 25% less than their foreclosure amount. Typically we see $50,000 discounted from the foreclosed amount.
In my humble opinion the banks are competing to unload their properties and driving the market in a negative manner. This frenzy to sell is biting them in the rear as they ruinously compete to sell their REOs. Unhealthy competition may just drive things into a bigger frenzy.
You posted this quite a while ago and looking back at how things went over the past year, it almost appears that we had a crystal ball! Our MLS changed the input criteria and now REO “yes or no” is a required field. And at this point about 80% of what is closing in the Las Vegas area is REO and pricing is steadily declining. If you still follow my blog, what is your area doing now?
I think I really like the opinions on your blog. The articles are interesting and speak the truth. Also, where did you find the layout? It rocks! I’m Jessica from Phoenix,AZ and plan on participating here a lot. By trade I am an economist but by night I enjoy socializing. Hi all!
I work in a different State, California to be exact. I agree with your feelings that 17% is too low. We are an Appraisal Firm, and our most recent statistical analysis for Red Bluff, California indicates that 60% of the recent sales are REOs. Since we have a smaller MLS I took the time to analyze the individual listings one-by-one to find a trustworthy ratio.
I would not be surprised to find that your ratio may be somewhat less than ours but certainly greater that 17%.
At this time it is typical that the lenders are foreclosing at 100% of their loan + charges but actually selling for about 25% less than their foreclosure amount. Typically we see $50,000 discounted from the foreclosed amount.
In my humble opinion the banks are competing to unload their properties and driving the market in a negative manner. This frenzy to sell is biting them in the rear as they ruinously compete to sell their REOs. Unhealthy competition may just drive things into a bigger frenzy.
Comment by Leland Turner | 07.10.2008 | 1:24 pm
You posted this quite a while ago and looking back at how things went over the past year, it almost appears that we had a crystal ball! Our MLS changed the input criteria and now REO “yes or no” is a required field. And at this point about 80% of what is closing in the Las Vegas area is REO and pricing is steadily declining. If you still follow my blog, what is your area doing now?
Comment by Lowell | 05.3.2009 | 10:05 pm
thans for the tip
Comment by PamelaTist | 05.23.2009 | 11:20 am
I think I really like the opinions on your blog. The articles are interesting and speak the truth. Also, where did you find the layout? It rocks! I’m Jessica from Phoenix,AZ and plan on participating here a lot. By trade I am an economist but by night I enjoy socializing. Hi all!
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Comment by Dromwouttok | 08.4.2010 | 4:14 pm