For those of you that are interested, here are a couple REO stats from September.
From Sept 1, 07 to Sept 30, 07 the REO inventory in Nevada went from 597 to 738. That equates to a 23.62% increase in REO inventory over the 30 days of September. Is this going to be a continuing trend???
Hi Lowell - I think we'll see REOs increase for the next couple of months, but I'm not sure that they will keep that same pace. A funny thing about stats like this is you can spin them depending on the point you're trying to present. If you compared the percentage of REOs to total available homes in the MLS, the increase wouldn't be so dramatic.
23.62% is the kind of number that 'doom and gloomers' will pick up on to support their views of a real estate crash. REOs going from 2.2% to 2.7% of available listings (just as an example) still shows the increase but makes it sound a little more palatable, doesn't it? :)
Hey John, How are you? Thanks for the comment.
I agree with you totally. I guess I don't always throw out the more positive point of view because I automatically try to see the opportunity in whatever is going on. Like with the REO numbers up, the banks will keep reducing prices to get their inventories back down. The REOs in Las Vegas alone, equals about 5% of our market. Couple that with the number of short sales in Las Vegas and that makes up about 20% of the market. That is a substantial enough market share to keep driving prces down. That in turn means great deals for buyers! It not always going to be a good market for everyone, so we have to look at it from the right perspective...just like you said!
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