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Where did the inventory go?!?!?! Is the next wave coming?

The market is brutal here in the Riverside County area! The supply is down and demand is UP! We are fighting like cats and dogs to sell the few properties that are still on the market and get this...... short sales are getting lots of activity too.

Our office had over 300 active bank owned homes on the market about 6 months ago. NOW...... we are down to about 30 (active) bank owned listings. Anything we put on the market gets multiple offers (usually more than 10). Our assignments are waaaaaaaaaaaaay down, but that appears to be the case with all the REO listing brokers.

My question is........... When will the next wave start hitting???

A lot of our contacts say 30-45 days, but it seems like that is what they were saying 30-45 days ago! Asset managers have nothing to give out. It seems like they are all over us with the few properties that we currently have, which they never did before when they were all overwhelmed with properties.

Should we take a vacation for the next couple months until properties start being released again or what????

Posted by Tyson Robinson on 05/05/2009 05:04 PM

Comments (16)

bank owned homes, murrieta, inventory, foreclosures, inland empire, listings, reos

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16 Comments on Where did the inventory go?!?!?! Is the next wave coming?

MAY

At least sales are up. We are seeing a lot of activity here in Maryland too! Thank heavens for a spring market!

We are seeing traditional home resales sell faster than REO this week...an anomoly...probably, but the market is definitely moving. See our Prescott AZ market:

Prescott Arizona area foreclosure market report as of 5-02-09

My REO contacts say a new wave is coming in 30 days.

:) PS

I think it wont be long before you see another wave - perhaps even bigger. If this drags on long enough then even the Alt A and prime paper will up for sale.

I'm wondering the same thing. Many well-priced properties are selling over listing price with multiple offers.

You know that as soon as you go on vacation the next wave will come.

Hi Tyson - I've seen significant drops in the Las Vegas inventory this year, particularly over the last two months. I'm also curious about when the second wave will hit. Now is a great time to build a solid group of buyers and investors.

We are seeing properties getting offers before they are even technically on the market. Somehow other agents are finding out about our REO listings and begging us to let them show them during the pre-marketing period and we're seeing multiple contracts on them, too.

But hey - at least they're selling!!!!

MAY

How about all of REO agents go on vacation so the next wave hits. I heard that it will take 120 days for the next wave to push through the pipeline. I hope not.

MAY

Tyson, at least sales are up! That is always a good thing!

MAY

Isn't it nice to have your REO buyers making realistic offers? The multiple offers is getting buyers off the low balling trend and making a respectable offer on an already well priced home!

MAY

The next 'wave' we're expecting isn't due for some time. From what I understand, the banks are now waiting to get all the properties in their names and say this will take an extra effort and considerable time. Depends on sources, but the general viewpoints I'm finding are: 1)--for some reason, there's fear that the gov't is going to step in and regulate the # of listings given to any one asset mgm't company and even regulate who, and how many agents get those listings, and, 2), depending on region(s), those that have handled more than their 'fair share', will be regulated as to how many listings they'll be awarded next time around, if any at all. Sort of scary when we think about it, but one never knows what's coming around the next corner.

In this last 'run' of bank owned properties, many of us were seeing houses sell before the sign even went up in the yard. Investors and wise first-time homebuyers got used to the fast turnaround and easy closings and are spoiled. Now, at least in the market we're in, buyers are jumping on reasonably priced homes and actually creating 'bidding wars' on homes that weren't even drawing offers when the 'glut' was going full bore. It will be interesting to see what the new 'wave' will bring as far as 'quick acceptance of offers' and finally, the 'easier closings.'

MAY

Here in our area, we went a few months with only one sale in the whole county (a very small county). In the past month,m there have been a number of sales. A friend of mine did a FSBO and sold within 2 weeks, and he had two bidders, one of which had a contingency, so he sold to the other.

MAY

I see a lot of homes in preforeclosure....its seems that the process itself is taking longer.

I do see a lot more coming in the near future (in the Chicagoland area anyway)

JUN

You know we're in trouble when even short sales are getting mulitple ofers.

We had a short sale come back and ask for highest and best, lol.

Last week we were assigned about 20 properties and many of the other REO brokers got quite a few this past week...... so looks like the inventory is going to finally improve here in Riverside County. About time!!! It's been crazy here!

Thanks for all of your input and comments!!!

JUL

Same thing here Tyson. In the past two weeks I have been assigned eight new listings in Orlando. However, my broker and the rest of the team probably had close to 15-20 new assignments in the past couple weeks.

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