A frustrating spring

[SD Realtor]

A few months back sdr had posted about his projections of a robust spring. I am definitely seeing those results come true for certain home types. Homes that show well and are in good condition and are priced right are moving.

A secondary effect that we have not discussed much is the inventory problem. Quite frankly the inventory is horrible. Most inventory that is out there either has been on the market for a long long time or it is distressed inventory that has offers into the lender (for short sales). What we are seeing here is the prototypical seller who feels that they can fetch a higher price by sitting out another year or two. Of course I am not saying they will, but I am saying they will not list under these conditions. Thus the inventory remains poor, very poor in some of the desireable areas.

It will be an interesting 8 weeks. Seasonally this is when we see more homes coming on the market. Let’s see if that is the case.

Don’t mistake this post for a call that we have hit bottom or anything like that. It is more of a statement that it is going to be a frustrating spring. Additionally if we see increased stimulus in the form of credits, lower mortgages, things like that, make no mistake about it, more buyers will get off the fence.

Just reading posts over the past 6 months I believe we have seen more buyers then in the past 3 years here.

[sdrealtor]

SD R
Pretty much a spot description of what I was trying to prepare people for. For the most part no one will list unless they have to. There are quite simply not enough properties in the distress/REO pipeline in the areas most Piggies would be interested in to satisfy the demand that is there. I have a handful of nice short sale properties in nice areas. If I got an approval tommorrow on any of them, I could pick among 4 to 6 buyers on each. Prices are down and more buyers are back in the game. Inventory is abysmal. In Rich’s January resale data rodeo he pointed out that months of inventory has fallen by 50% since last year. We both know it has dropped a lot more than that as there is probably between 20 and 40% of the inventory out there are short sales most of which have offers on them.

I think we may see sales volume drop a bit because there isnt adequate sellable inventory on the market to meet demand. By sellable I mean a property you can make an offer on and actually buy within 30 to 60 days. I guess you could call this effective supply. It will be interesting to keep our eyes on the months inventory figures which while overstated should continue to plummet.

Take a home that show well in good condition and is priced right and I’ll show you a property in or about to go into escrow.

[sdrealtor]

SD R
Pretty much a spot description of what I was trying to prepare people for. For the most part no one will list unless they have to. There are quite simply not enough properties in the distress/REO pipeline in the areas most Piggies would be interested in to satisfy the demand that is there. I have a handful of nice short sale properties in nice areas. If I got an approval tommorrow on any of them, I could pick among 4 to 6 buyers on each. Prices are down and more buyers are back in the game. Inventory is abysmal. In Rich’s January resale data rodeo he pointed out that months of inventory has fallen by 50% since last year. We both know it has dropped a lot more than that as there is probably between 20 and 40% of the inventory out there are short sales most of which have offers on them.

I think we may see sales volume drop a bit because there isnt adequate sellable inventory on the market to meet demand. By sellable I mean a property you can make an offer on and actually buy within 30 to 60 days. I guess you could call this effective supply. It will be interesting to keep our eyes on the months inventory figures which while overstated should continue to plummet.

Take a home that show well in good condition and is priced right and I’ll show you a property in or about to go into escrow.

[sdrealtor]

SD R
Pretty much a spot description of what I was trying to prepare people for. For the most part no one will list unless they have to. There are quite simply not enough properties in the distress/REO pipeline in the areas most Piggies would be interested in to satisfy the demand that is there. I have a handful of nice short sale properties in nice areas. If I got an approval tommorrow on any of them, I could pick among 4 to 6 buyers on each. Prices are down and more buyers are back in the game. Inventory is abysmal. In Rich’s January resale data rodeo he pointed out that months of inventory has fallen by 50% since last year. We both know it has dropped a lot more than that as there is probably between 20 and 40% of the inventory out there are short sales most of which have offers on them.

I think we may see sales volume drop a bit because there isnt adequate sellable inventory on the market to meet demand. By sellable I mean a property you can make an offer on and actually buy within 30 to 60 days. I guess you could call this effective supply. It will be interesting to keep our eyes on the months inventory figures which while overstated should continue to plummet.

Take a home that show well in good condition and is priced right and I’ll show you a property in or about to go into escrow.

[sdrealtor]

SD R
Pretty much a spot description of what I was trying to prepare people for. For the most part no one will list unless they have to. There are quite simply not enough properties in the distress/REO pipeline in the areas most Piggies would be interested in to satisfy the demand that is there. I have a handful of nice short sale properties in nice areas. If I got an approval tommorrow on any of them, I could pick among 4 to 6 buyers on each. Prices are down and more buyers are back in the game. Inventory is abysmal. In Rich’s January resale data rodeo he pointed out that months of inventory has fallen by 50% since last year. We both know it has dropped a lot more than that as there is probably between 20 and 40% of the inventory out there are short sales most of which have offers on them.

I think we may see sales volume drop a bit because there isnt adequate sellable inventory on the market to meet demand. By sellable I mean a property you can make an offer on and actually buy within 30 to 60 days. I guess you could call this effective supply. It will be interesting to keep our eyes on the months inventory figures which while overstated should continue to plummet.

Take a home that show well in good condition and is priced right and I’ll show you a property in or about to go into escrow.

[sdrealtor]

SD R
Pretty much a spot description of what I was trying to prepare people for. For the most part no one will list unless they have to. There are quite simply not enough properties in the distress/REO pipeline in the areas most Piggies would be interested in to satisfy the demand that is there. I have a handful of nice short sale properties in nice areas. If I got an approval tommorrow on any of them, I could pick among 4 to 6 buyers on each. Prices are down and more buyers are back in the game. Inventory is abysmal. In Rich’s January resale data rodeo he pointed out that months of inventory has fallen by 50% since last year. We both know it has dropped a lot more than that as there is probably between 20 and 40% of the inventory out there are short sales most of which have offers on them.

I think we may see sales volume drop a bit because there isnt adequate sellable inventory on the market to meet demand. By sellable I mean a property you can make an offer on and actually buy within 30 to 60 days. I guess you could call this effective supply. It will be interesting to keep our eyes on the months inventory figures which while overstated should continue to plummet.

Take a home that show well in good condition and is priced right and I’ll show you a property in or about to go into escrow.

[cashflow]

Hey the SDR and sd …. r,

A realtor mentioned to me that they thought May would be a telling sign as this is when the delay caused by the moratorium on foreclosures would catch up…meaning more homes would actually reach foreclosure and come on the market; is this the case?

[cashflow]

Hey the SDR and sd …. r,

A realtor mentioned to me that they thought May would be a telling sign as this is when the delay caused by the moratorium on foreclosures would catch up…meaning more homes would actually reach foreclosure and come on the market; is this the case?

[cashflow]

Hey the SDR and sd …. r,

A realtor mentioned to me that they thought May would be a telling sign as this is when the delay caused by the moratorium on foreclosures would catch up…meaning more homes would actually reach foreclosure and come on the market; is this the case?

[cashflow]

Hey the SDR and sd …. r,

A realtor mentioned to me that they thought May would be a telling sign as this is when the delay caused by the moratorium on foreclosures would catch up…meaning more homes would actually reach foreclosure and come on the market; is this the case?

[cashflow]

Hey the SDR and sd …. r,

A realtor mentioned to me that they thought May would be a telling sign as this is when the delay caused by the moratorium on foreclosures would catch up…meaning more homes would actually reach foreclosure and come on the market; is this the case?

[AK]

I’m definitely feeling the part about the frenzy, and the inventory. There are some ****ed-up houses out there. As a buyer I’m also seeing a lot of pricing games … not sure if this is increasing or if I’m just paying more attention.

Just as an example, I saw one house in O’side go from $231K to $262K to $274K in the span of two weeks. I suspect I’ll see more of this in the near future … asking prices going up exactly 10% or $15,000 :/

One question for those of you in the business … I see a lot of pendings but not a lot of closings. Is it just a matter of overworked REO property managers, or do you suspect a lot of these pending deals will fall through over financing, inspections, and so on?

[AK]

I’m definitely feeling the part about the frenzy, and the inventory. There are some ****ed-up houses out there. As a buyer I’m also seeing a lot of pricing games … not sure if this is increasing or if I’m just paying more attention.

Just as an example, I saw one house in O’side go from $231K to $262K to $274K in the span of two weeks. I suspect I’ll see more of this in the near future … asking prices going up exactly 10% or $15,000 :/

One question for those of you in the business … I see a lot of pendings but not a lot of closings. Is it just a matter of overworked REO property managers, or do you suspect a lot of these pending deals will fall through over financing, inspections, and so on?

[AK]

I’m definitely feeling the part about the frenzy, and the inventory. There are some ****ed-up houses out there. As a buyer I’m also seeing a lot of pricing games … not sure if this is increasing or if I’m just paying more attention.

Just as an example, I saw one house in O’side go from $231K to $262K to $274K in the span of two weeks. I suspect I’ll see more of this in the near future … asking prices going up exactly 10% or $15,000 :/

One question for those of you in the business … I see a lot of pendings but not a lot of closings. Is it just a matter of overworked REO property managers, or do you suspect a lot of these pending deals will fall through over financing, inspections, and so on?

[AK]

I’m definitely feeling the part about the frenzy, and the inventory. There are some ****ed-up houses out there. As a buyer I’m also seeing a lot of pricing games … not sure if this is increasing or if I’m just paying more attention.

Just as an example, I saw one house in O’side go from $231K to $262K to $274K in the span of two weeks. I suspect I’ll see more of this in the near future … asking prices going up exactly 10% or $15,000 :/

One question for those of you in the business … I see a lot of pendings but not a lot of closings. Is it just a matter of overworked REO property managers, or do you suspect a lot of these pending deals will fall through over financing, inspections, and so on?

[Author]

Posts