$64 Trillion Dollar Question is?

Interest rates are at an all time low, buyers are coming out in droves and the REO's are at a all time 3 month low. First the Banks flood the market, drive the prices down and now there is a slow trickle of available homes here in Riverside County, Ca. The few that are coming out have multiple offers over and above list price some as much as $30-40,000, cash buyers are at the head of the line. Banks are accepting the Highest and Best then have to renegotiate because the appraisal numbers are still low. Then buyers are having a hard time getting the loans because of this. Catch 22 in action.

Houses that have gone thru Trust Deed sales it the last four months, have been sitting vacant and are being vandalized. Further pushing down the values and the Banks will have to spend money on repairs in order to sell. The existing REO available are either in need of major repairs or still priced higher than current market value.

The buying season is here now and yet we don't have available inventory. If the Banks wait until September to list the current REO inventory, will the buyers still be there? Most want to buy in the spring and summer and be moved in by the time school resumes. This is the time for Banks to disolve their Toxic Assets and a chance to help stablize the RE economy. If they would start to clear off the books take deficits and start moving on.

Currently Short Sales are the majority on the MLS REO's are second and third are regular sales. Regular sales are priced at market value and are SELLING! I have several Short Sales with offers I am waiting for a response from CW/BofA word is out they are not going to Foreclose but neither have they accepted offers since Febuary. So what is the master plan? I guess this is the $64 TRILLION DOLLAR question.