Increase Repo Homes for Sale Deals, Prices Fall in California
The number of completed repo homes for sale deals in California increased at a significant rate in April, particularly in the counties of Riverside and San Bernardino. And together with the increase in completed repo homes for sale deals was the decline in home prices, albeit at a slower pace than the speed of home sales.
However, industry experts warned against reading too much in the increase in home sales and the decline in home market prices.
Egan-Jones Ratings head of mortgage research Inna Koren pointed out that investors are concerned over the increasing foreclosure rates in Southern California.
She said that investors are not expecting another dramatic decline in real estate prices in California until 2011. She explained that there is a possibility that the housing market in the state is nearing its bottom, but it does not yet indicate a recovery. She believed that the complete recovery of the housing market will depend on what the government would ultimately do.
John Husing, an inland economist, echoed Koren’s sentiment adding that home market prices were showing some signs of stabilization.
Meanwhile, real estate agents are thinking of the possibility that a single home could receive multiple offers within a few days of being placed as repo homes for sale. Adding to their optimism of a fast home sale is the low interest rates which could attract any potential homebuyer.
However, many real estate agents believed that the housing market is far from recovering, with an anticipated second wave of foreclosures in the coming months and its impact on the economy continuing to be a big concern to the industry.
Century 21 Superstars real estate agent Mark Magana pointed out the large volume of repo homes for sale. He said that the home price trend will depend largely on how banks handle the inventory. He added that if banks will flood the market with foreclosed properties, the prices will surely drop.
Meanwhile, house sales in the county of San Bernardino surged by 88 percent last April compared with the same month a year ago. In Riverside, home sales rose by 40 percent for the same period.
Industry experts are quick to point out that distressed properties accounted for most of home sales in the state. And many people are buying repo homes for sale because they thought that they are getting bargains.
