Dr. Housing Bubble 08/13/08

[Crewleader]

Foreclosure and Short Sale Report: 33.79% of All Southern California Inventory for Sale is Distressed Homes.

The amount of distressed homes for sale in Southern California is simply mind boggling. The more stunning revelation is the bulk of pay option ARM recasts don’t even begin until 2009 with a small percentage starting this quarter and a larger number in the forth quarter. Even with that said 33.79% of all homes for sale in the Southern California market are in some form of distress. Since distressed property sales usually result in a lower price, you can rest assured that future price measures are going to continue to trend lower.

Given that the majority of homes that are selling in California are distressed properties it goes without saying that offering aggressive discounts will result in some price movement. The vast majority of buyers in the current market with a good financial balance sheet realize that they are the one’s who set the terms regarding a deal. There is no immediacy to buy a home today for fear of prices going higher next month. They most likely will be lower. The urgency to make an offer contingency free on the one home in the neighborhood for fear of being overbid is now a long memory of manic delusions of the housing bubble.

Let us get a quick snapshot of the Southern California market:



http://www.doctorhousingbubble.com/foreclosure-and-short-sale-report-3379-of-all-southern-california-inventory-for-sale-is-distressed-homes/

[NMDemDist2]

1. and you have to wonder about the 'non distressed' inventory too

who in their right mind would be trying to sell in this market if they didn't 'have' to??