Low inventory due to many people still upside down and hedge funds buying up everything are creating a housing shortage that is causing prices to jump almost 20% year to year in our area.
Realtors report that attendance at open houses is way up even in winter months. In addition, requests for pre approval letters from mortgage brokers is up. Website traffic to real estate sites is up. People are assured that the worst is over for the housing market so they are looking to buy.Caldwell banker reports that traffic to its listings was up 38% from last year at this time. Fannie Mae reports that the highest share of consumers expect prices to rise soon. (guess what- they already have)
Maybe now that the prices are up, more people are not underwater and will list their homes for sale. Let’s hope the hedge funds dont go after those also.
Colony capital made a deal with the banks to buy 970 foreclosed homes. They made a deal with the govt to rent them out so the real estate market would not tumble. These homes are in Ca, nevada and az- the worst hit states. They paid an average of 112% of value. And you wonder why we can’t get deals? I tell my students not to pay more than 70% of value.
If you want to know the right way to find deals today, you need to attend my upcoming basic training bootcamp on Jan 26th.
Click here for info
According to Zillow, there was no advantage of buying an REO. You got no discount at all in some areas and a measly 1..8 % discount in many others.
Cash rich hedge funds are crowding everyone else out. Just attend a local trust sale and you will see for yourself. Most foreclosures never even reach the MLS.
This article really describes our market perfectly. Hedge funds are in there buying up everything regardless of price or condition. In some areas, there is less than a one month supply. 6 months supply is normal.