“Buy Wholesale and Directly From the Bank”
Yes, people, that is the pitch that an agent made in today’s top listing on the Daily Stats. Interesting choice of words, eh? Given the number of homes being foreclosed and in the hands of financial institutions, this could be considered true. One single seller can only lower the price just so much due to their investment or hands s being tied by the mortgage lender, but the lenders themselves have so many properties that they need to be rid of that they can hold a fire sale, undercutting individual sellers (which in turn could cause further foreclosures).
While I understand the need for financial institutions to rid themselves of property—because let’s face it, they are not in the business of being landlords and empty homes do not generate any money for them—it is possible they are doing more damage than good by artificially lowering prices for their own gain, and not for the good of the economy. Yes, the buyers will benefit. Yes, this will assist in the reset of home prices. But it could also increase foreclosures and bankruptcies and contribute to a recession. While I am no economist, this scares me a bit. These companies caused the whole sub-prime debacle to begin with, artificially inflating home prices for their own gain, and now they are doing just the opposite. When will it stop?
As for the property in question, it is located at 24540 Eden Avenue in Hayward. A 1,506 sf, two-story townhome with 3 bedrooms and 2.5 baths located in a 6-unit complex (HOA Dues: $288/mo). This home sold in January of 2007 for $540,000. It was original listed for sale at $445,000, but is now offered at $350,000 and has been on the market about 2 weeks.
Recent Sweet Digs Posts:
Serious Slash and Burn in Oakland
How Small?
Berkeley: Home Sales Stick Close to Asking Prices
SF: Your Best Investment?
