Short sales and foreclosures made up 52 percent of all recent Southern California home sales -- (Pasadena: real estate, lenders)

[Vascodagama]

Looks like reality is starting to rear its ugly head ...

Short sales and foreclosures made up 52 percent of all recent Southern California home sales – Lenders aggressively pricing lower-end properties to move. Two Pasadena examples.

"If you want to get a sense of what banks are doing different in 2012 look no further than short sales and REOs. I track MLS data carefully in Southern California and all of a sudden you are seeing a movement of recent listings priced to move in short sales and REOs. This is happening with lower-end properties but of mid-tier markets. Is this a prelude of what is to come for the rest of the year?

[Malloric]

Yup. The REO market is saturated, gotta clear 'em out. Nice to see the banks (at least some of them) finally decided to start selling them. For the last couple years you stayed the hell away from REOs since the banks weren't interested in selling them.

[EscapeCalifornia]

I guess they're giving up on holding onto the properties until the market comes back to 2006 prices before selling.

[DMenscha]

I must have missed where the data source for this is. I tried, I really did. He usually does fairly well at naming his source.

If it is true, I think it's probably a good thing. REO inventory can make up a substantial portion of the market in some locations. Fortunately not mine, but in nearby markets the number is probably closer to 80%.

[Vascodagama]

Originally Posted by EscapeCalifornia

I guess they're giving up on holding onto the properties until the market comes back to 2006 prices before selling.

I don't think prices will be returning to 2006 levels again ... at least not in the foreseeable future. I think we are not even close to a bottom yet ...

[EscapeCalifornia]

Originally Posted by Don9

I don't think prices will be returning to 2006 levels again ... at least not in the foreseeable future. I think we are not even close to a bottom yet ...

That's my point. So many sellers (people and banks alike) are suffering under the delusion that the last few years are just a rough patch in the road and we'll get back to "normal" before long. A lot of non-distressed houses just go off the market because there's no one ready, willing, and able to pay what they think the house is worth.

[tickyul]

Foreclosure.....REO...whatever....the market in Ca is highly competitive. Lot of these "cheap" houses are garnering multiple offers the day they are listed....many of these houses are bought up by investors with cash.

The hoopla about a Real Estate crash is just a bunch of bunk.

[Ultrarunner]

Don't know what the market will be like...

I do know that whatever I thought about buying distressed property has been wrong when a bank is involved.

Several had multiple cash bids... so there is definitely money in play.

One that I have been following for the last 24 months has been banked owned since mid January...

I called the bank and was told it might be another 7 to 8 months before it will be offered... so almost 3 years since the payments stopped.

[Vascodagama]

Originally Posted by tickyul

Foreclosure.....REO...whatever....the market in Ca is highly competitive. Lot of these "cheap" houses are garnering multiple offers the day they are listed....many of these houses are bought up by investors with cash.

The hoopla about a Real Estate crash is just a bunch of bunk.

Maybe where you live but not in Orange county beach communities. Homes hit the market and then sit, then the price starts to drop. Some people put offers but then they find out the bank won't approve them. Once a home price hits a certain low level, usually ~150K below the initial asking price, then the home goes into escrow. I have seen this happen over and over.
We are starting to see many short sales and REO's and very few regular sales.

[1AngryTaxPayer]

Guess it depends on where but places near the beach here have been moving and still pricey.