With all the foreclosures I am amazed that prices are not falling either fast
Prices don’t fall that fast, foreclosure in California is a lengthy process that can take upto 6 months from the date of initial default. Even after that a few more months the property becomes REO and the bank will sit on it until their inventory baloons and they get desperate.
You have to be patient, the cycle has to run it’s course. Prices will drop like a rock but only after critical mass is reached 😉
There is a HUGE amount of resistence from sellers and lenders to do all they can to avoid taking a loss, only when they HAVE to will prices be slashed like no tommorow. This is also beginning to happen with the builders due to skyrocketing cancellation rates and severe lack of demand, they need to sell inventory to avoid holding costs and to recoup their cash.
