Real Estate Recovery - Placer County, CA - Q2 2011 Foreclosure Activity Declines
The number of properties foreclosed in Placer County, CA has been on a steady decline for the past 3 months. From May 2011 to June 2011, the amount of Placer County foreclosures decreased by 17.6% and in July 2011, foreclosures went down another 14.5%.
Here are the exact numbers for the 2nd Quarter of 2011:
- May 2011 - 250 foreclosures
- 173 bank owned/REO
- 77 sold to 3rd parties
- June 2011 - 206 foreclosures
- 158 bank owned/REO
- 48 sold to 3rd parties
- July 2011 - 176 foreclosures
- 132 bank owned/REO
- 44 sold to 3rd parties
WHAT DOES THIS MEAN FOR CONSUMERS AND INVESTORS?
For consumers, a decline in the amount of bank owned/REO's mean that there are less homes being added to the existing shadow inventory (properties that are foreclosed, but not yet listed for sale). This means that as foreclosures continue to decline, a real estate recovery will begin to take place. Financial experts like Suze Orman predict that the real estate market may come back as early as 2015. We'll see about that, but remember that real estate is LOCAL...so just because a real estate recovery taking place in one part of the country, it doesn't necessarily mean that a national recovery is happening. :)
For investors, a decline in foreclosures that are sold to 3rd means that there is likely to be an increase in the competition...which could equate to higher prices paid by bidders at trustee's sales...which means reduced profit margins for the investors who flip properties. Institutional investors have more overhead expenses than private investors, but their ability to buy in volume will allow them to tighten their margin on one property "just to get the deal" whereas a private investor needs to be more cautious on each and every transaction.
INVESTORS AT A TRUSTEE'S SALE IN ROSEVILLE, CALIFORNIA (JULY 2011)
BOB & LEILANI SOUZA
Bob Souza - 925.513.3400 - firstname.lastname@example.org
Leilani Souza - 916.408.5500 - email@example.com
HOMES : CONDOS : LOTS & LAND : INVESTMENTS : RENTALS
Roseville : Rocklin : Granite Bay : Loomis
Penryn : Newcastle : Lincoln : Auburn