Our real estate market is continually changing. Here is what we’re seeing in the Coachella Valley.
There are many fewer foreclosure (bank-owned or REO) properties on the market. In fact, that segment of our market is down 64% from last year. At one point, nearly two-thirds of the local inventory was REO; now it stands at about one-third. The reason is, very simply, cost.
After several years of foreclosure frenzy, the banks started looking at the money they were pouring into their repo market. That slowed them down a bit. Between court and attorney costs, taxes and commissions it costs the bank an average of $70,000 to foreclose on a house.
Of course, that doesn’t mean that the lenders are giving up on foreclosure; instead, they’re offering properties on short sale, which they can do for substantially less money. In the Coachella Valley, our short-sell inventory is up about 32%.
The really good news is that processing time for short sales is finally getting more reasonable. Not long ago, buyers could expect to wait six months to a year (!) for the bank to handle their offer. Now that time frame has significantly decreased and we’re seeing a more typical 90- to 120-day window for short sale processing.
But buyer beware! All lenders are not created equal. Some are reasonable and responsive; others are obstructionist. Want a recommendation or an opinion? Call Me!