I attended the NAHREP Real Estate Business Expo today in Sacramento and it was great. So much great information. Most importantly I heard over and over again from “the experts” that there is NO shadow inventory. Yes, we will still have foreclosures and yes, we will still have distressed property sales however there is not going to be a new WAVE of REO or bank owned homes coming on the market!
I think I have been saying this for a while now and I have also been saying that our inventory is low. I heard today that it may get LOWER…..
I know that statistics are not fun and they are not sexy….they do, however, tell us where the market is and where it is going, so I follow them to keep on top of this crazy market in the Elk Grove area. If you don’t like statistics stop reading here. If you want to know more, keep on….
According to Sean O’Toole, CEO of Foreclosure Radar, in California, we have
- approximately 8.6 million homes
- approximately 6.8 million mortgages
- approximately 2.07 million underwater households
- approximately 434,000 delinquent households
- approximately 180,000 households currently in foreclosure
- approximately 70,000 bank owned homes
- and approximately 18,000 distressed sales per month
This means that with 18,000 distressed sales each month in California and 70,000 bank owned homes, we only have a 4 month supply of inventory right now. If you add in the 180,000 households currently in foreclosure, since a high percentage of these will sell either through short sale or REO, we currently have a 14 month supply of distressed properties. However, please understand a large percentage of these are not on the market and some may never hit the market as the homeowners are trying to do a loan modification.
For more information on the foreclosure market, check out the June 2012 Foreclosure Radar Report.
What does this mean to Elk Grove home sellers and Elk Grove home buyers? If you are an Elk Grove homeowner thinking about selling your home, we are at a 5 year low on inventory, meaning we are receiving multiple offers on our listings…Call us today at (916) 405-5737 to get the value of your Elk Grove home. And if you are an Elk Grove home buyer, you need a great Elk Grove real estate team working for you! A team that understands the local market and what is happening in it! Call us today at (916) 405-5765 for a free home buyer consultation!
And one last thing, if you are thinking of investing in the Elk Grove/South Sacramento County area, I heard some great news today! The percentage of renters in our area is expected to increase over the coming months, rents have already started to increase, and there is a need to convert 500,000 to 1,000,000 rental units in the state of California. This is a huge OPPORTUNITY for you! If you are thinking of investing in Elk Grove or the South Sacramento county area, make sure to call your investment specialists, The Mode and Durham Team at (916) 230-0371.
Use our quick and easy site to get an instant value for your home! For a more accurate value, or to talk about getting your home on the market, give us a call at 916-405-5737 today!