No it's not. This market is definitely special and one that will go down in history. I am not a quitter and refuse to be a quitter. One of the BEST ways to describe a market is playing a board game with a sibling who keeps changing the rules after it starts. I WANT TO PICK UP THE BOARD WITH THE PIECES ALL OVER AND THROW IT AT THEM. But no, I accept the challenge!
Will the inventory come back? I still don't know. Rumors of Freddie & Fannie doing rentback programs on foreclosed properties with tenants already in them, short sales being approved & loan modifications happening makes me unsure of what the future holds. Will the avalanche fall now that the moratoriums have ended is the big question. Read in more depth here
We still have a light trickle of REO inventory coming on the market. I am going to post numbers (don't yawn!!) I want everyone to see where we are at:
April's numbers from my monthly stats (Pulled 4/14/2009):
- Listings (4/14/2009): 17846
- Under Contract (4/14/2009): 10068
- Sold March 2009: 3525
- Month's Inventory: 5.1
4/23/2009:
- Listings (4/23/2009): 16903
- Under Contract (4/23/2009): 10723
- Sold March 2009: 3523
- Month's Inventory: 4.8
4/30/2009:
- Listings (4/30/2009): 16450
- Under Contract (4/30/2009): 11001
- Sold March 2009: 3525 (closed for April 2009 as of AM 3193)
- Month's Inventory: 4.6 (using March's numbers since all closes are not in)
5/1/2009 (ONE DAY LATER!):
- Listings (5/1/2009): 16341
- Under Contract (5/1/2009): 10946
- Sold March 2009: 3523 (closed for April 2009 as of AM 3476)
- Month's Inventory: 4.6 (using March's closed numbers again)
5/7/2009 (LESS THAN ONE WEEK LATER!):
- Listings (5/7/2009): 15610
- Under Contract (5/7/2009): 11351
- Sold April 2009: 3867
- Month's Inventory: 4.0
In less than one month, our inventory has gone down by ONE MONTH!
Our REO (Foreclosed Homes) Market is an EXTREME Seller's market with almost no inventory at 1.0 Months currently (the next set of stats will not be released until around the 15th.) Last month's stats were 1.9 months and that was rough on us. You can always get the most CURRENT Monthly REO Stats that I pull right here.
Short Sales are remaining stagnant and a really depressed market and it will be hard to tell for another 30-60 days if the buzz on the street is true about short sales getting accepted left and right. Reporting in the MLS is very inconsistent. You can read the most current short sale statistics right here.
Appraisals are a challenge also. Coming in with repairs or low. (We had 3 good appraisals to 2 challenging appraisals this week!) BLAH!
If you want to take advantage of the low interest rates and the up to $8000 tax credit for qualifying first time buyers and don't want to play the "wait and see" game for the REO to come back online, give us a call. We are in the trenches every day (16-18 hours a day M-F) and are extremely aggressive and creative to get offers accepted. We have the resources and will and patience to prey on expired listings, pre-listed foreclosures, new construction and short sales. If you have the patience, we will work with you to get you into your home!
You are not allowed to fall in love with your home until we hand you the keys. You have to be strong emotionally and we can guide you through the tough process!
This is NOT your daddy's market nor is it even your sister's market! This is not the time to buy a house from your husband's friend's uncle who is a Realtor and who hasn't sold a home in two years. This is a very very special and difficult market and you deserve a great buyer's agent team that is living in the trenches on your side! Feel free to contact us, even if you are not ready so we can set you up on your search and keep you updated on all market changes weekly!
Renee:
I agree with you, this is a street fight that changes and morphs all the time. Do you think that the slowing of new inventory is due to holding back on the foreclosures purposefully yet?
Maybe it is a good idea to slow it down, to get rid of some inventory and control the price from falling more. Something like De Beers did with the diamonds.
Unfortunately, rates are backing up, I think that will be your next challange.
Richard
Richard: I agree, we are not going to see 4.75 FHA rates forever. How long is the question. I am seriously disturbed about the fannie/freddie rent back program rumors. I want to know if it is true or not. It would make no sense for them to take on the liability but it does make sense for them to control the inventory.
How is the market for Joe Homeseller? With REO's being an extreme sellers market, and Short Sales stagnant, are buyers in a feeding frenzy for the REO's or do they look at homes from Joe Homeseller? Very interesting market you have.
Love where you say "you are not allowed to fall in love with your home until we hand you the keys." I have a buyer that is so emotionally attached to a short sale and we still do not have bank approval 75 days in. I think I am going to start using that line verbatim with my buyers. Hope you don't mind.
Renee - those are pretty impressive absoprtion rates, and quite a change. I echo Debi's comment on "you are not allowed...". As we all know it ain't over til it's over, adn then sometime even then problems arise after the fact.
Jeff
"I am not a quitter and refuse to be a quitter." That shows in your writing and in your personality and it is certainly admirable and you do it with a smile and a great sense of humor! Have a good weekend and a great Mother's Day!
Renee you have put together some great stats, very interesting. I am very excited about this market, from an investor point of view it is an awesome opportunity that won't be around long!
... there's no way you will ever be a quitter based on what I have seen of your writings over time !!!
And my bet is that you are passionate and dedicated enough to take advantage of whatever twists in the road or opportunities arise ...
...nice to see the inventory trimming a little !
Go get 'em Renee !
Cheers !
Sheldon :o)
Just like the world, we are always changing and reaching new ups and downs and completely new information reaching our minds every second. I do hope the market gets to what it used to be in California, especially out here in Vegas with all these brand new homes...
I never knew you could get a place for only a $100 a sq. ft. now I'm here in Vegas/Henderson...There are major steals on the market, some nice new properties for only $46 a sq. ft. This could eventually be a re-distribution of wealth...
Just thought I'd add some of my thoughts,
Andrew Rosenblatt
www.RosenblattFinancial.com