California Real Estate Inventory is Shrinking
ByWe called this one back in Feburary/March of this year, 2009. When the TARP money was approved there was the “90″ day hold that gripped the market to give the banks a showing of due diligence when it came to helping the distressed homeowner.
After that “90″ day hold – there was a second “90″ day hold implemented by the California State Government – Which took us to approximately September 15, 2009.
Then there was nothing, no Wave, No Frenzy, No Water in the way of Real Estate Breaking through the dam. NADA!!!
So, we watched the market as it increased in short sales and some of the humans that were holding to some equity and wanted to sell came out of their “safe havens” to do just that.
But those are getting less and less. We are seeing the Flippers hit the market – but they have been dismayed by the 90 day rule when it comes to turning properties for investment. With such a low inventory of Listings – They are patient and a lot of the time get Cash Buyers for above their listing price.
Is Santa Clarita Valley Any Different? No – same same – we have been seeing the inventory dwindle for our Buyers and the Frustrations are getting close to peaking. We would foresee that next year, 2010, would be better and hopefully get us back to an inventory Rich market for the Buyers that we are working with.
How far from the truth will that be? - Not too far – because we have a lot of “behind the scene” dynamics that are happening with regard to Terming out of Loans, ARM’s, Neg Am, and other types of interesting Loan Models that were selling like hotcakes back in 2005, 2006 and 2007.
RSS Options
If the government and the banks would stop prolonging inevitable foreclosures and short sales, the economy could benefit from more real estate transactions, and also expedite the recovery of the housing market.