SacRenter_IHB
New member
In the past few weeks I've noticed some interesting foreclosure activity in my target areas (in Sacramento). What I've seen is that houses that were on the market as short sales last spring are coming back onto the market as foreclosures. These are houses that were listed as short sales a year ago, they sold sometime in late spring/early summer, and they are now coming back onto the market as bank owned. These houses are priced at least 20-30% below the other homes on the market.
One house we looked at was a short sale for $375K and is now back on the market as a bank owned property for $200K. People are in a frenzy over these properties. Current homeowners are calling us (and other renting friends) and telling us to BUY-BUY-BUY. Our renting friends are frantically trying to put together offers and visit these properties before they sell. Everyone is bemoaning the fact that they don't have money to invest for flipping.
As an outsider to the California Real Estate culture I am fascinated by this frenzy. First thought - if these are the houses that were short sales a year ago they were the first wave for my target neighborhoods. How many other houses are months away from being in the EXACT same situation as these? I've been watching these neighborhoods - there are dozens of short sales that have been listed in the past year. Second thought - if these houses sell for even 10% over their listing price they still set a comp that is significantly lower than the current comps. Aren't they going to bring down the comps for all of the houses in the neighborhood?
It seems like people believe these homes are anomalies. People seem to think their neighborhood is immune because they didn't have the early foreclosures that other neighborhoods had. They don't see these foreclosures as indicative of what's to come. Again - it's the frenzy that fascinates me most. People who I <u>know</u> are underwater on their own homes are saying that they wish they had extra money to invest in these "bargains". While as a renter I'm running numbers in my head thinking that even at 200K I could rent that house for less than a mortgage payment.
This is purely anecdotal, I know. But this culture really fascinates me!
One house we looked at was a short sale for $375K and is now back on the market as a bank owned property for $200K. People are in a frenzy over these properties. Current homeowners are calling us (and other renting friends) and telling us to BUY-BUY-BUY. Our renting friends are frantically trying to put together offers and visit these properties before they sell. Everyone is bemoaning the fact that they don't have money to invest for flipping.
As an outsider to the California Real Estate culture I am fascinated by this frenzy. First thought - if these are the houses that were short sales a year ago they were the first wave for my target neighborhoods. How many other houses are months away from being in the EXACT same situation as these? I've been watching these neighborhoods - there are dozens of short sales that have been listed in the past year. Second thought - if these houses sell for even 10% over their listing price they still set a comp that is significantly lower than the current comps. Aren't they going to bring down the comps for all of the houses in the neighborhood?
It seems like people believe these homes are anomalies. People seem to think their neighborhood is immune because they didn't have the early foreclosures that other neighborhoods had. They don't see these foreclosures as indicative of what's to come. Again - it's the frenzy that fascinates me most. People who I <u>know</u> are underwater on their own homes are saying that they wish they had extra money to invest in these "bargains". While as a renter I'm running numbers in my head thinking that even at 200K I could rent that house for less than a mortgage payment.
This is purely anecdotal, I know. But this culture really fascinates me!