Musings of a Career Consultant

SoCal Texan in Bmore Leading Rock Stars

Wait, So What’s Going On?! October 27, 2010

Filed under: Uncategorized — mkrchnak @ 9:30 am

I’ve had a lot of confused clients (and agents) asking what’s going on with Foreclosures. California was not one of the 23 states that halted foreclosures. In fact, we saw a rise in foreclosures in the 3rd Quarter. If you look at last year, which was an REO-centric market, versus this year, which was a Short Sale-centric market, I can pretty much predict next year’s going to be another REO-centric market. Reason being because not all of these Short Sales are going to go through and some people were never even attempting a Short Sale, just riding out the lack of mortgage payment as long as they could. While Short Sales will still be apart of the marketplace, I believe we’ll see the REO’s as the majority stockholder again next year. Still not sure what 2012 will bring with a large majority of ARMs coming up that year both in the residential and commercial arena. We’re starting to see a shake-up in the commercial and higher-end homes but not sure how that will translate at the mid and entry-level residential range. More to come…

Oh, and you’ll love this! Riddle me this, if price reductions are up and home sales are down, how is it that most Buyers are still having to place offers OVER the asking price on a home? That’s a funny one, huh? Because of this, the median home price in California is on the rise. It’s not technically a Buyers’ or Sellers’ market, is it?

Side note, the Election’s are heating up and with Carly Fiorina hospitalized yesterday, I’m not sure how that’ll play into the vote. I’ve talked to some campaign managers (that aren’t working on either Senate or Gubernatorial campaign but know the candidates well) and they say that even in the circles in Sacramento, there’s little guarantee for any of the candidates. I wish them the best of luck and hope that whomever is elected will challenge Sacramento and DC to demand more of itself. I think California and the Country stand for more than what they’re giving Californians and Americans and I’d like to see that a bit more balanced as soon as humanly possible.

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