From a perspective of three years ago it is happening more slowly than I expected.I certainly thought there would be bargains for rehab and rental type deals by now. Things still don’t pencil out for much in the way of detached houses for those purposes. In the last downturn the market was flooded with VA and HUD Repos. This time those two agencies are not holding many SOCAL properties. As we know the holders of distressed properties have been adverse to dumping properties of any type.
From a perspecitve starting 6 months back, which is about when we were having discussions about “big chunks” coming off prices I am satisfied with the pace as compared to my expectations. I expect the holders of distressed properties to continue to capitulate faster and more broadly from here on out. It would be great to know what the inflationary vs deflationary components of the return to affordability will be.
Yours truly is shocked that we basically have a good interest rate situation at this time. I thought that issue would have gone to hell by now. I still expect it too, but would be happy to be wrong.
