For the past few months the banks have not been releasing their inventory… which means the only type of properties that have been on the market are “short sales” as you probably know, short sales take a long time! Most buyers do not like to wait around the 1 to 3 months or more it might take to get a short sale approved.
Well, over the past few weeks the banks have slowly been dribbling REO’s (Real Estate Owned) onto the market. Guess what has happened with this slow distribution… YEP!!! BIDDING WARS!!! The last home I submitted an offer on for my clients received 25 offers with in a 24-hour period and the top bidders were all CASH buyers. First of all, where the heck are all these buyers coming from and secondly, where are they getting all this CASH? That is right, CASH!!! We aren’t talking $30,000 homes we are talking $300,000 homes. Haven’t these people heard we are in a recession and the stock market tanked and everyone is broke (that was sarcasm for those of you who don’t know my humor)?
I have recently been told by a few sources that the floodgates are opening and that we will have an onslaught of REO homes hitting the market soon. One of my sources sited that the reason for this onslaught will be due to the last batch of the adjustable arm loans maturing. This will mean that the bidding wars of this magnitude will subside.
I will keep you posted!
Disclaimer: I live, work, and play in the Temecula Valley and this is the market I am referring to.
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