In case there was any doubt that banks are trying to create the illusion of limited supply of homes on the market, real estate agent Chris Smith of Santa Rosa sets the record straight in the Press Democrat:
While buyers are snapping up distressed homes, the supply could swell again if banks put more on the market, said Chris Smith, a CPS agent in Santa Rosa who sells foreclosed homes.
“The fact that the banks held foreclosures off the market from the foreclosure agents dried up the supply,” he said.
Some banks held off selling foreclosed homes this spring after President Obama launched an effort pushing lenders to help owners stay in homes, Smith said. Banks also didn’t want to help drive prices lower by flooding the market, he said.
After receiving a handful of foreclosure listings the past two months, Smith received six in the past week.
“I think we’ve got another wave of foreclosures that is about the same size as the first wave that we had,” Smith said.
Gosh,who could of suspected this was happening? To me it is as surprising as the decline in prices for homes here,wasn't 500x monthly rent for a 15 year old tract home in Rohnert park reasonable?
ReplyDeleteWhat I find confusing is why individual banks (not the group as a whole) would hold back foreclosures. They know firsthand that a flood of inventory is coming that will crush prices. They should dump the houses now before they have to take bigger hits, especially the smaller banks.
ReplyDeleteHHB,corporations are run for the benefit of executives,not shareholders or society.These decisions are made on the basis of internal politics and bonuses as well as the expectation that the losses will be socialized.
ReplyDeleteno ! not again ? jim cramer said its over ! no more foreclosures! a real estate agent trying to sale a house on our street said the same thing ! better buy now before it's to late ! so , this cant be true ! :)
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