I’m glad you didn’t get the place– there are still too many buyers out there not in the know, or due to their financial position buying into the new version of subprime loans (FHA) and basically still smoking the funny stuff…
From the last time I posted months ago, and you had posted some examples we had started to look into buying again, and passed after further inspection.
Long story short, there is still a considerable amount of inventory that has yet to hit the market, including a big chunk of the fraud homes.
Here’s an example; one of the homes we had, paid 330 in 02, sold at 550 in 05. That person sold for 650 in 06 in a questionable transaction, that person defaulted and the property was recently sold for 220 in a bulk bank deal. FYI, 3500 sq ft.
Prior to all the recent financial news, banks were offering bulk deals on houses in the area, 10-20 homes in a package to investors, and there are larger packages of homes deals that had been available as well, and probably still.
With investments with great valuations for the investor currently available in numerous areas (and industries), most astute and well capitalized investors won’t even look in Temecula.
That means the investors who take these packages, in my opinion, can not afford to hold out for higher prices and will flip the homes as quick as possible. And I bet some will get stuck with some, and will get to a point where they’ll sell at a loss.
