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
Real Estate Investment Specialists
Southwest Placer County, CA
Bob Souza - 925.513.3400 - bob@souzarealty.com
Leilani Souza - 916.408.5500 - leilani@souzarealty.com
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HI Bob and Leilani,
Excellent and well researched report.... reducing the number available foreclosures will eventually drive more and more buyers into the "regular" homes for sale and reduce overal invenory in the market and improvements in Place County
We have fewer foreclosures coming onto the market as well down here - I wonder how the foreclosure future is going to look with all of the fraud information coming to light right now!
Leilani--Let's hope this trend continues. Thanks for stopping at my site.
Great information Leilani! I'm wondering how the new short sale law for California will affect our foreclosures. Here in EDH only 7% of our total listed single family homes for sale were REO in June. I haven't calculated July stats but and sign of improvement is great.
Leilani That is good news for Placer County homeowners - the recovery throughout the US does appear to be starting
Bob and Leilani - the drop in forclosures and sales to 3rd parties is indeed good news ..... The real estate recovery has a toehold in Roseville CA
Leilani, That is great news, I know that the foreclosures here in Naples, especially the lower priced ones are flying off the shelves!
If we remember that 90% of the nation is employed, there is lots of room for recovery. If my home inspection business is any indication, it’s been well underway here for a couple of years now. Yesterday I did three inspections! I haven’t done three inspections in one day since way back in 2005.
yes they look so nice but Foreclosures are such tough on to stomach.
Peter and Linda, I couldn't have said it better myself! :)
Leilani
Barbara-Jo, I was kind of wondering the same thing...guess we'll have to wait and see how things pan out! :)
Leilani
You're welcome, Mary...it's always nice to stop by and see how you're doing! :)
Leilani
DeeDee, that's great news for you and your market in El Dorado Hills! :)
Leilani
It sure seems that way, doesn't it, Karen? :)
Leilani
I agree, Kathy...hope this trend continues! :)
Leilani
Christine, that is good news for you and the market in Naples, Florida! :)
Leilani
Three inspections in one day is indeed good news for your business, Russel! :)
Leilani
Paul, the condition of foreclosures vary in our area...sometimes they are just in need of cleaning and other times, they need a complete renovation! :)
Leilani