12-12-2012 04:55 PM
12-13-2012 05:14 PM
Well take a look at this.
According to Fabian Calvo - Real estate expert says there’s more to the story about rising prices in the housing market than what’s reported by the mainstream media. “There’s a tremendous amount of manipulation . . . Yes, prices have gone up 3%. I see it, but it’s because the inventory has been suppressed on purpose by big players . . . not foreclosing on properties.” Calvo should know because he runs a company calledTheNoteHouse.us. It buys and sells $100 million annually in distressed debt and real estate. Calvo says,“Over 20 million houses, on any given night in America, are completely sitting vacant.”
12-17-2012 02:39 PM
Hi Beavertonbuyer, your observation regarding low inventory is correct. It seems like more and more, when I bring a buyer client to a property listing (under $200k), the property is in a multiple offer scenario. This is due to several factors. Many buyers (including more and more investors) now believe that we have seen the market pricing at its bottom, and are now in recovery. That, combined with very low interest rates, are creating a lot of buying activity. Buyers are competing with other buyers (and investors) for good properties. As of November, the PDX market has 4.2 months of home inventory available for sale. Back in January, there was 7 months of available inventory for sale, nearly twice as much as today (so no, you aren't imagining it). For perspective, there was 10.2 months of inventory available for sale back in Nov 2010.
The real deal for a buyer securing a property in this market- is the buyer and buyers agents ability respond to new property listings quickly (get there asap), and take swift action (research and offer), before the next buyer, and with a stronger offer than the next buyer. A buyer and their agent must be agile in this market. There my two cents .
05-10-2013 05:23 PM - edited 05-10-2013 05:24 PM
I like the idea of using the term vacant homes instead of the term "inventory" as that seems like a more honest description of how things are,but, some areas were hit harder than others. I see soooo many neighborhoods with empty homes and many with multiple families packed into one. The lenders made the mess and they have huge value drops on those 20 million homes; they will do anything to fabricate excitement and demand I suppose, who can blame them.
I can tell you first hand what happens to most vacant homes: they deteriorate, need repairs, landscaping rehab, are vandalized, etc and that makes for an extra drop in value that only a seller's market (real or imaginary) can overcome.
On the other hand, in certain, high -demand markets, it is a good time for standard sale sellers to start paying attention.
It is interesting to consider what would happen if buyers folded their arms and refused to accept the current inventory with any inflated prices or demands to clear up previous owner's financial encumbrances. Realistically a boycott can't pick up much steam when money is involved! Some buyers deserve a break, others do not as they were part of the problem. I guess the prevailing mentality is kind of like pro sports: we complain about player's salaries while we throw more and more money at them.
I'm sorry if my post seems kind of negative; I don't actually feel that way: any movement has it's own interesting and useful aspects.