Beyond The Bailout
If you can look past all the “rescue plan” “bailout” buzz there’s another hot topic – short sales. Both the OC Register and The LA Times posted stories on their real estate blogs discussing the state of short sales and their influence on the current local market.
Both outlets take different approaches to the issue and come up with the same results – short sales are the drain on the current market. The abundance of short sales are making the market difficult for buyers to get into it and navigate it as well.
A UCSD professor Ryan Ratcliff gave his firsthand experiences with the foreclosures to the LA Times and they concluded:
As short sales relate to the question of a housing rebound, he [Ratcliffe] concludes, that they “have temporarily hijacked the market mechanism” and that “the near-term course of the housing market will be determined more by the procedural timelines of foreclosures and short sale approvals than any notions of a magic price that will clear existing inventory.”
The OC Register quoted UCLA’s forecast as stating:
A realistic forecast of the bottom of the housing market needs to explicitly acknowledge that short sales have temporarily hijacked the market mechanism: the near-term course of the housing market will be determined more by the procedural timelines of foreclosures and short sale approvals than any notions of a magic price that will clear existing inventory. After our housing mega-bender, we will be suffering inventory indigestion for some time to come.
No matter how you slice it – the short sales are having a huge impact on our market. Until the short sale issue is resolved we will not see any resolution as far as this “bottom” we are all searching for.
Some local short sales contributing the problem:
25081 Linda Vista Dr
4 beds / 3 baths / 2,900 Sq Ft
Listed at: $565,000
26701 Quail Crk
2 beds / 2 baths / 1,200 Sq Ft
Listed at: $275,000
25042 Mustang Dr
4 beds / 5 baths / 5,010 Sq Ft
Listed at: $1,600,000
22655 Napoli
4 beds / 2 baths / 1,335 Sq Ft
Listed at: $399,000
