One of the leading indicators on how well our local real estate market is doing can be determined by the number of Notice of Defaults. As seen by the graph below, we have continued to hover between 150 and 200 NODs from almost the beginning of the year. Thus the ongoing trend of bank foreclosures, short sales, and REOs has been steady through out the year and we have seen little improvement in the real estate market.
Therefore Banks are continuing to build an inventory of bank owned property (REOs). This is good news for Buyers for several reasons. One, we can expect many more of these properties coming on the market next year. Two, these REOs will keep home prices low. Recently Banks have been pricing these properties very aggressively and in many cases we are getting multiple bids. This is a result of currently historic low interest rates and the first time owner tax credit, mixed in with some investors looking for rental properties. As you know already, this is one of the best times for Buyers of Real Estate.
Finally when we do see a downward trend in the NOD's, we will know that we are transitioning into a balanced health real estate market. I will be keeping an eye on this NOD trend and updating you monthly.