Slowly but surely it comes. Foreclosures in Corvallis, OR have been an intimate affair so far and judging from the NODs (Notice of Default) for the last two years it will stay that way. You read an occasional NOD, but that is it, the rate is minimal compared to what is going on in most other markets, especially locally in Albany, OR.
But in the last few days I have seen two new listings that were bank owned. One was a notorious listing last year, on the market as short sale forever and in really poor shape with one of my clients breaking through the rotten deck planks during a showing. It is now bank owned and back on the market.
We (hopefully all) know what shadow inventory is and what it means for a local RE market when it is hitting. It can drag overall prices down if it represents a large contingent of the listings and buyers often think they are a true bargain (which is really not necessarily true).
We know that banks are hoarding those properties in the hopes that the market picks up and absorbs them for a smaller loss than if they would just sell them at huge discounts.
So when I see two in one week it is a bit alarming. Is the wave coming?
I will monitor this closely and hope that it is just a coincidence...
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