West Covina, CA- The West Covina Real Estate market is in for a crazy next two months. With a historically low number of homes available for sale, coupled with the incredibly high demand for housing is crazy enough. Now throw in the near end of the first time home buyer Government Supplemental Housing credit and... The West Covina Real Estate market is in for a roller coaster of a time these next two months.

Friday, August 21, 2009

Current Available West Covina Homes: 101 (33.7% are distressed properties)
# of homes sold in the last 30 days:     75 (new jump in sold homes... Average fore the previous six months was 60)
# of Months inventory on hand:            1.34 Months (A 'normal' market would have 5-7 months inventory on hand)

If you or someone you know is looking to sell their West Covina home; these next two months look to be a good time to do it. Prices have already slightly rose over the past three months, and with the credit coming to an end, and inventory so low I expect to see a spike in the price with buyers fighting to get into a home before the $8,000 credit opportunity is gone. This may be a rare opportunity to sell when the artificial demand for property is at its highest.

I call it an artificial demand because I believe there are still factors that may cause prices to come back down. One factor is what happens to buyer's demand after the incentive to buyers falls off? If the number of buyers dissappear when the credit does this may cause the available inventory to creep back up. The other factor is the banks efficiency to the foreclosure process. Their is a surplus inventory of 'bank owned' properties, also commonly referred to as REO properties, that the banks cannot foreclose on. The banks were already having a very hard time keeping up with all of the foreclosures, and when the Government stepped in with the 90-day moratorium this backed them up even further. Then the government decided to put the burden of proof on the lenders to show they tried to do a workout program with each and every property before foreclosing on it, and the process got slower.

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