We are in uncertain times. Waiting to see what the government is going to do to help and if it will help? Waiting to see what the banks are going to do with the continual flow of homes that are readjusting, are they going to start cooperating with owners or just waiting to start foreclosing again?
We are at an interesting fork in the road right now. The banks can start working with home owners with modifications and agreeing to more short sales in a reasonable amount of time. If this becomes a reality then the market might actually start to correct itself or at least stop plummeting. Short sale listings will be the next wave of the future.
The other option is for the banks to wait for the moratorium to be lifted and flood the market with all of the foreclosures that have been backing up for the last 4 months. If this happens I believe that we will see the largest single drop in prices to date. The market is not prepared for another onslaught of a large number of foreclosures released at once.
The banks have almost depleted there current inventory that is on the market but flooding the market again would be a mistake. The banks seem to be proving that shooting them selves in the foot is what they do best.
Thanks for listining to my opinion of our California Real Estate Market.
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