REO’s are getting a lot of action!

Now-a-days, if you’re looking to buy a home you’re more than likely to find a lot of REO’s or Bank Owned properties.  Due to the mortgage fall out, banks are finding themselves owning hundreds, no thousands of homes!  (Keep in mind, banks are not in the business of owning homes, they are in the business of loaning money so people like you and I can own a home.) In any case, the misfortune of others has become a great opportunity for others. 

People who didn’t think they could afford to buy a home in the Bay Area are now out in droves and they are making multiple offers on all the REO’s out there.  I’m finding that the buyers agent is even calling before they show any of these REO’s to see how many offers have already been received and IF it’s even still available … because they are all getting multiple offers! 

I have an REO in Antioch that was listed for sale in Janaury 2007 for $479,000 and it’s currently listed for $289,900!  No wonder these REO’s are getting a lot of action!  Some say we haven’t hit the bottom yet and others say we have, all I know is there are a lot of people (First time home buyers, move-up buyers and investors) who are out shopping … and buying homes!

Are you interested in buying an REO?

Real Estate Stats: February 2008

February 2008

Detached Homes Report: for Alameda – Castro Valley – Dublin – Fremont – Hayward – Livermore – Newark – Pleasanton – San Leandro – San Lorenzo – Union City; as well as, a complete report.

Attached Homes Report: for Alameda – Castro Valley – Dublin – Fremont – Hayward – Livermore – Newark – Pleasanton – San Leandro – Union City; as well as, a complete report.

The Bay East Housing Reports are based in whole or in part on data supplied by the Bay East Association of REALTORS® or its Multiple Listing Service (MLS). Neither the Association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date. Note that statistics released each month may be revised in the future as new data is received.

5 Signs of a Housing Market Pickup

Fewer Builder Concessions
Look for new-home builders in your area, as a sign of new confidence, to curtail their offerings of free mortgage payments, new toasters, designer landscaping, and other concessions they rolled out at the start of the downturn.

New Jobs vs. New Housing
Historically, one new home owner is created for every two new jobs, so if job creation continues in your area and builders are scaling back on production, it’s just a matter of time before the supply and demand equation moves toward equilibrium.

Months’ Supply
The country had about a 10-month supply of housing at the end of last year, but the figure you’re interested in is the months’ supply for your market. The historical norm is closer to six months.

Visitors per Listing
Realtors can look at the visitor trends tracked by the local MLS using today’s computerized lockboxes. They can see not only how many visitors view a house but how long they stay; more visitors staying longer suggests buyers are getting serious.

Rising Apartment Rents
Healthy rental rate increases show strong demand for rentals, but if such increases go on for too long or rates rise too steeply, renters will start inquiring about buying.

Source: NAR Research