The anticipated Tsunami of foreclosure homes might never come.
It s being said in the news There will be another wave of bank
repos but the truth of the matter is the "Tsunami" of bank owned homes
might never strike us.
With buyer confidence up, and REO or Bank owned houses getting sold
in a day or occasionally in a matter of minutes banks and government
cannot afford to flood the marketplace with Bank Owned houses.
In a number of areas of Southern California, the current supply of
houses has diminished from an shocking 25 month supply to a low 2.2
month supply creating a lot of areas an Ordinary Market!
REO houses are getting multiple offers (5-25 offers per house and
if the house is priced under $100,000 there could be up to 40 offers
or more and many consumers are funding the deal "All Cash."
The banks and the government have learned that putting houses in lesser
bundles causes demand!
The question is: What will occur with the giant amount of inventory
they have on hold?
Well, some banks have determined to get rid of them in smaller bundles
to create demand and elevated values.
Other banks have determined to hold onto their inventory and rent them out
for a couple of years until they are worth more.
And, other banks are promotion to large hedge funds which are buying
enormous blocks of homes which they are renting out. Their strategy is
to hold the properties for 3-5 years and then advertise them a
elevated price later onwhen the values increase.
In summary, Banks are finding ways to elude greater losses.
Traditionally, growth and movement in the economy have been generated
by the growth in house sales.
Let s fire up the nation and start buying the hardly any bulk of bank owned
houses they are putting in the marketplace.
