I have a conspiracy thought as well. I beleive that banks are managing their inventory to baance out there profits on a monthly basis on their balance sheets. If you remember banks that received TARP monies went through a "stress test" recently. So these banks show how much money they lent out and the profit on those new loans and only close on small amount of their inventory of "Bank Owned" or "Short Sale Inventory" so that they minimize the impact against that months profits. Just a theory, would like to hear what people think about this.
Maricopa County Arizona:
We have one of highest amounts of residential home inventory in the country. We broke lots of firsts over the last couple of years. We had the fastest appreciation gains in the country and now we had the fastest depreciation values in the country. Now with prices so low and interest rates attractive, the property investors and first time home buyers are flooding the market with purchases. With that flood of home sale activity, inventory levels seem to be improving. In the last two months bank foreclosure inventory in the price range of $200,000.00 or less has dried up. I got one report put out by Fletcher Wilcox with Grand Canyon Title Agency that shows inventory levels for homes priced under $200,000.00 with about 2.5 months of inventory.
Now I am being told by many real estate sources that the banks held back on releasing more inventory until they knew for sure how the new federal home bailout programs would work. Now that the banks know there is not much incentive, we are told that a flood of more foreclosures should be hitting the market.
But are the banks really going to release all this inventory?
I am not a conspiracy believer, but I have a trustworthy source stating that banks will not be
releasing all their inventory and will take advantage of higher rates to help offset losses
over the last couple of years. They are also taking advantage of multiple offers now that "big brother" is offering so much incentive to first time home buyers.
I am not 100% buying into this one, but thought I would pose the question.
Are Banks Holding Back on Releasing Home Foreclosure Inventory and for what reasons?