Dave Roberts has an interesting post up on the Windsor REO market (see his graph above). Apparently, there are only 12 MLS listed properties that are bank owned. To put this number in perspective, there have been more than 70 REO sales since the first of the year.
Dave also points out there are 35 more REOs that have not yet hit the MLS. Yet, even adding in these numbers inventory looks low.
However, I'm confident that these REO numbers do NOT indicate a market bottom. As I've written on this website previously, REOs are down because A) a law passed by the California State Legislature in September slowed down the foreclosure process and B) there were voluntary foreclosure moratoriums by Fannie/Freddie as well as most major banks. In short, foreclosures/REOs are about to soar.
To get a feel for what is in store for the California market take a look at this chart from the Dr. Housing Bubble website:
Notice of Defaults are hitting all time highs after a reprieve due the the aforementioned factors. A good number of these NODs will turn into foreclosures as history has demonstrated.
I assume that Notice of Defaults are soaring in Windsor as well. If anyone can track down this data I'd love to see it.
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