The Latest Market Update - REOs Continue.

Hot Statistic: 236,000 foreclosures in California in 2008, 560 were in December.

This WEEK: Pending sales are UP, Inventory is DOWN. Why? Investors, foreign and local are buying as much as they can, Sellers are holding/contemplating what to do, Banks are holding back inventory (for now).

So What is Going On Right Now?
Fannie Mae in pressuring banks to offer rent backs to owners (or former owners). In addition, the banks are holding more of their inventory... for the time being. There are initiatives and movements across the United States to assist homeowners with keeping their homes and/or staying in them.

Locally, we have seen what looks to be a bottom on the East side of the Bay. Expect prices to remain flat for the next several years - up to 5 years. Rental rates have continued to increase - what was renting for $1,400 a few months ago is now renting for $2,000. This presents a great market for investors. That being said, we are beginning to see foreclosures come to the West side which will quickly be followed by pricing pressure (we've already begun seeing it).

What does all this mean for the market and for you?
A likely extension of the recovery - we are now looking out to 2012, versus 2009. For buyers, it means great opportunities now and more to come. For those contemplating selling in the near term, give serious consideration to modifying your plans and staying for the next 5-8 years. If that doesn't fit, the best time to sell is probably right now.

If you want more information specific to your neighborhood, email me.

If you are interested in investing and want more details on the REO (bank-owned) market, email me. There IS a method to the madness and a way to win in this multiple offer, low communication, low information market segment.

Tracy Pina