We are living in interesting times in the real estate world. A succession of first time homebuyers credits has soaked up the low end single family inventory. The top end is still struggling to reduce the inventory.
We have a huge overhang of foreclosures or should be foreclosed upon homes. And we have another large group of homes that could be for sale but the owners are waiting for the market to strengthen.
As I said, interesting times.
Now that the inventory of available homes has tightened, be ready for the foreclosures to pick up.
Banks seeing that supplies are tightening and that their time on the market will not be too long will get these properties off their books.
Look at these numbers from CNNMoney.com
In some areas, supplies are even bidding-war tight. In Denver, for example, supply has fallen to 5.7 months from 6.2. In Phoenix it has declined to 4.5 from 5.2; and in San Francisco inventory has halved, to 3.2 months from 6.5 last March.
In California, almost all cities have a short supply of single-family homes. That’s especially true in the lower-priced categories, according to Leslie Appleton-Young, chief economist for the California Association of Realtors.
The supply of homes that sell for less than $300,000 is at 3.2 months statewide, down from an already low 3.3 month supply 12 months ago.
I would predict a bounce in the foreclosure numbers as banks try to monetize their inventory. The reduction of the shadow inventory will be good for the real estate markets as another level of insecurity will be reduced.
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