[quote=carlsbadworker] . . . Rick Sharga from Carrington recently said: there are three different sources for properties that you can purchase. There is new home development of which there has been virtually none of over the last five years. There is existing home sales, which are limited since between 1/4 and 1/3 of all homeowners who are upside-down do not or cannot sell their property. There are also distressed properties, which are technically existing homes that are put into a different bucket. All three of these things are lower than normal, and there is a limited amount of inventory available. At this precise moment in time Wall Street came in and gave $8 billion to spend on REO properties. Imagine what would that do to the price and that’s exactly what happened. Common men are screwed . . . [/quote]
CW, you forgot to mention that of the 2/3 to 3/4 remaining local homeowners who are NOT upside down, the vast majority of the ones who appear to be selling are:
– possible heirs for homeowners who died;
– relos out of county (where an employer may be financially assisting in closing and moving costs);
– those who can’t wait another minute to move closer to or live with family members (usually 75+ yrs old);
– those getting a divorce;
– and, those who must move into assisted living or a nursing home NOW and their heirs don’t want their property.
All “other homeowners” appear to be sitting tight. WHY? Because they CAN! They don’t have to play games with bottomfishers … incl the cash offerors who want to use their properties as a launching pad for their next $150K ++ profit in less than 60 days.
These homeowners can ALL wait for a better day … and, in SD County, those better days WILL come … if not sooner, than later.
It’s all okay.
If today’s buyers want more inventory to choose from, that will happen when they lose the “I’m going to steal a house in excellent condition and/or a prime location,” mindset and face reality.
