California Foreclosure Sales Near $2 Billion

[Demeter]

Source: Economic Policy Monitor (blog)

California Foreclosure Sales Near $2 Billion

Foreclosure Radar reports: California Foreclosure Sales Near $2B in March Of the $2B worth of properties sold in March, 4,796 went back to the lender after receiving no bids, representing $1.82B

posted by Raymond Weber @ 4:08 AM


Read more: http://www.economicpolicymonitor.com/

[slackmaster]

1. Lenders hate REO

Real Estate Owned - Properties that they have foreclosed on an been unable to sell. They have to keep paying property tax, insurance, and maintenance to keep the homes in sellable condition.

A rise in REO inventories tends to drive down prices.

[Gregorian]

2. I bet many of them go to auction, too.

I'm waiting for the market to tumble. It's not happening. I don't think a billion bucks is meaningful in the real estate market. Even if so, it's going to take a long time for prices to drop. Different speeds in different markets.

[dysfunctional press]

5. the housing market is not going to tumble very far...

before the prices drop a lot- they'll drop a little, and maybe a little more...and then the investors will swoop in.

people who are waiting to buy a house for 30% less than they are today is probably going to be waiting for the rest of their lives.

[Gregorian]

6. I'm living proof of that.

I sold my place, and am holed up in a rental house. I'm not an investor. Money doesn't mean a thing to me. But I've got what money I've made, and am waiting.

It's like the Hope diamond. It's never going to be $19.95.

[cliss]

3. Thanks for posting, Demeter.

Well, let's look at the value of these homes. If we divide 2 bill by the properties, we get -

2,000,000,000/4,796 = $417,014

Does that sound about right for California real estate? Maybe the prices are too high since they are not selling.

Another alarming thing is the 'monthly' type reporting on this stuff. Like maybe in April, it will be the same thing, or maybe worse.

[Demeter]

4. Those Were the Prices Ten Years Ago

Tremendous amounts of inflation in California housing: it was the Greater Fool Theory, combined with the distortions of Prop 13 and the scarcity of buildable land....the only thing that's changed is the job situation!

[ProudDad]

7. That's low for California

They can't even sell foreclosures here.

The fucking speculators have ruined our lives.

In 1977 houses changed from being a person's home to commodities. That's when the rapacious capitalist bastards started buying and selling them, mostly to each other, bidding up the prices way beyond ANY intrinsic value. They call it "flipping".

What REALLY pisses me off is trying to listen to Air America in S.F. and hearing commercials from another R.E. FUCKS who want to sell you a CD and training in how to "make money in Real Estate". Of course, what'ya expect from clearchannel.

I'm leaving the state -- couldn't afford to buy a home here so bought one somewhere else. The weather's too damn cold here in NoCal anyway.