Buyers, Investors and REO agents have been hearing for months that the next wave of foreclosures are going to hit the market. Bottom line is, they haven't, inventories have decreased and the average sales price of properties have increased. Buyers are frustrated because many properties receive multiple offers and they lose out when the seller request buyers to submit their "Highest & Best" offer.

 In our immediate office area there are just 24 Bank Owned Active Listings in the Folsom area and 14 Active Listings in El Dorado Hills. The balance of the inventory is made up of Short Sales and a few regular listings.

There is a lot of speculation why lenders are not releasing inventory. Some of the reasons are:

  • Lenders that took Tarp money are under pressure to modify loans.
  • Lenders are accepting more short sales.
  • Mark to Market rules have changed. Click below to watch a short You Tube Video hosted by two Las Vegas real estate agents that discusses Mark to Market.

       Click Here to watch Video

This is another article worth reading by Sean O'Toole owner of Foreclosure Radar.com regarding the Stealth Stimulus and how it has affected the current housing market.

Industry experts are currently predicting that the next new wave will hit the market in the first quarter of 2010. We will see if those predictions hold true.