At the beginning of the year it looked like foreclosures were picking up. But those pesky lenders are teasing us again – the April foreclosures have slowed considerably.
Here are the counts of SFRs foreclosed in North SD County Coastal, YTD (La Jolla to Carlsbad):
January: 49
February: 26
March: 43
April: 15
Without more foreclosed properties to sell, the inventory will continue to be bleak – homeowners with equity and lower motivation are either priced to sit, or on the sidelines.
Yet sales keep happening – consider this one that hit the market Friday at almost $500/sf:
http://www.sdlookup.com/MLS-110023589-1834_Glasgow_Ave_Cardiff_CA_92007
The seller, who just got his license and is working on his first sale, did some smart things, like install a moderate line of Frigidaire stainless appliances to help disguise his original kitchen that needs a full renovation. There are plenty of windows and light, and the yard has been tastefully arranged.
But with only 2,258sf built in 1948 and just a peek ocean view from the upstairs master only, the $1,074,000 list price still sounded optimistic……and he got a full price offer on Easter Sunday!
We need more foreclosures just to add something to inventory!
Okay, let’s say the banks have rigged the market and they are limiting supply. They have.
But based on the NOD’s that you are seeing from La Jolla to Carlsbad, are we really missing out on some nice coastal gems?
My thought is that a nice home that does get a NOD and which the bank has the opportunity to make some money, would be foreclosed on relatively quickly. And, the ones that do foreclose are going to be sucky, by a freeway or busy road or cracked slab, etc.
And, if a homeowner has made it this far they are probably going to make it. Strategic defaults being the exception.
It would be good to see if there is something being held back that Buyers are being prevented from having a crack at. In the least we’ll get a nice outrage session in the comments.
Just curious about how many who bought a year ago feel good versus bad a year later. I noticed one house in Carmel Valley sold for $595,000 last July and now is listed for sale for $585,000. That’s why I can understand that some buyers want a deep discount on the price in order to offset any potential dip in prices. But with today’s tight inventory sellers are having the upper hand.
“But based on the NOD’s that you are seeing from La Jolla to Carlsbad, are we really missing out on some nice coastal gems?”
The elective sellers that have ignored recent comps are taking the under on the number of gems about to be unleashed by the banks. The buyers waiting to buy a cream puff at an ugly duckling price are taking the over. Unfortunately for the sellers, the buyers are still winning this game because although the drip strategy may have slowed the price declines, it has not stopped them.
Latest Case-Shiller report out: “Home Price Index Hits Recession-Era Bottom in February” Full article:
http://latimesblogs.latimes.com/money_co/2011/04/home-prices-hit-april-2009-bottom-again-in-february.html
Mozart-They’re out there. I’m not going to publish the couple I’ve been keeping my eye on however because I want a crack at them! All you have to do is go onto Redfin and look for ‘purple’ icons on the map. One gem was taken back by the bank in January, and hasn’t hit the market yet. There are many like this, but the majority are serious fixers (which is fine if priced appropriately). I also follow properties through RealtyTrac subscription, lots of free rent for years and postponements of auctions.
Deb,
I am also looking for those very Gems … In my experience, a Bank Owned REO Gem is same as an owner occupied REO Gem. They both end up going for the same price … Savvy buyers who are eying these REO Gems are deeply frustrated as well, after loosing on to the previous gems … They will add a lot of butter on top of Gem’s actual value; just to grab it before it comes your way or my way. We have seen this pattern again and again on this board.
If you real want to grab a gem at value/discounted price … then best place is perhaps on the court-house steps or in a short-sale collaboration.
It’s amazing what 10k and some common sense will do for a fairly plain house, and even more amazing that most sellers don’t get it.