Motivated sellers: Foreclosure sales feed 'vicious cycle'

Good piece of enterprise reporting tonight from The Associated Press: "A growing share of home sales comes from foreclosures, especially in states hardest hit by the housing bust, according to an analysis of data. In some parts of California lately, nearly half of home sales came from foreclosed houses."

USA Today headlines the story, "Growing number of foreclosure sales feeds vicious cycle."

More: "The growing proportion of foreclosure sales is both a symptom and a cause of worsening conditions in the weakest housing markets. Homeowners who aren't on a deadline to sell are yanking their properties off the market. That means the remaining inventory is increasingly held by banks eager to unload foreclosed properties at fire-sale prices rather than carry the costs on their books."

The AP's foreclosure analysis -- focusing on the third quarter of 2007 -- found that, in California, foreclosure sales accounted for 11.3% of home sales in 2007, up from 3.7% in 2006.

Hat tip: Cal didn't point out this story, but he has frequently pointed out the rising percentage of foreclosure sales in Southern California.
Photo credit: L.A. Times

Comments

[Quasi X]

Sunsetbeachguy,

Turds and raisins? What the h--- is that supposed to mean? Speaking of turds, though, perhaps it's time for you to pull your head out of your a-- and start judging people as individuals rather than categories.

[Michael]

-Quasi X

Sunsetbeachguy is right. Your wife is the exception to the rule. So what?

Real Estate Agents, generally speaking, are some of the most underhanded self serving individuals buyers and sellers are forced to deal with.

Tricks include:

1) Pulling listings from the MLS to re list them later as "new".

2) Putting "SOLD" signs in McMansions or condos that have been sitting idle for 11 months.

3) Using appraisers that give the 'right' values.

4) Using skewed statistics to 'lie' about the market.

And lets not forget ever proverbial "now is always a good time to buy Real Estate". A Realtors job is to smile at your face and separate you from your money.

The Internet is changing things. I can't wait for the day buyers and sellers deal direct and cut these arrogant, overpaid middlemen (and women) out of the picture for good. They are just in the way and in most cases exist only to inflate the price and stuff their pockets with commission. Commission, that in most cases, YOU will be paying off for the next 30 years.

I am wrong here?

[Joseph... the Real Estate Guy]

Michael,

You are totally wrong!

If we follow your logic, we need to eliminate attorneys, politicians, doctors, accountants, police officers, and whatever profession you are in!

You have all kinds of scenarios in the mix.

*Good and knowledgeable agents.
*Incompetent//Innocent agents.
(Just like inexperienced brand new doctors)
*The unethical/dishonest/greedy (Maybe 10%?) just like any other profession.

Prices are set by: Supply and Demand. (You need to take some courses in Economics 101)
In other words, when you have 50 Buyers wanting the same property, what do you expect a Seller to do?
Sell it at a discount? Would you do that?
You sound like a "Disgruntled Postal Worker"(Sorry Po People)

Coming soon:
www.asktherealestateguy.com

[Michael]

Joseph,

You must be a Realtor. I've never quite understood Realtors are called 'Real'tors. Clearly there is nothing "real" about them. Hehehe.

Joseph. There are dishonest and or inexperienced people in every occupation. Yes. You are correct about that fact. However lets look a little deeper shall we? In some occupations there are clearly more dishonest people than others. And my assertion is that in Real Estate (generally speaking) there are more dishonest Realtors than not. I belive many people would agree with that. After all who better to survey than those who have actually had to deal directly with Realtors?

You claim I am "totally wrong". However, I am not.

Lets start with hanging "SOLD" signs on unsold units. And continuously re-listing units on the MLS. Do you deny this is general practice for Realtors? Both tactics are used to create a psychological effect on the buyer. The first is an outright lie. The second easily borders as a "dishonest" tactic. And these two tactics are only the tip of the ice burg. Cherry picking "good" appraisers, home inspectors, working with "good" Mortgage Brokers who will look the other way are all to the benefit of a Realtor.

Ethics are shouted and touted in Real Estate class but, generally speaking, in reality, are not followed. Why? Because everyone wants to get paid. Thats why.

Good Realtors are master sales-people who can seem to rationalize anything to their own benefit.

Are you a Realtor Joseph? 8)