This home was on the market for more than 3 years!!
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2009 Oct 11, 11:22am 1,686 views 2 comments
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Is this trend a weather cock of the beginning of the Double Dip?
"If this is the general story of foreclosed homes sitting on the market in the bay area, we should soon see a lot of impatient banks moving to unload their inventory and a further crash in the Bay area home prices!!"
Soon? Who knows? Banks won't sell at a loss until they are forced to so, and are sitting on tons of REO inventory. Banking is just accounting, numbers on a spreadsheet. If the bank forecloses and bids $1M for the home at auction when the second highest bid was $600K, well.... what home is worth $1M!! On their balance sheet they just traded a loan "worth" $1M for a house "worth" $1M. No loss!
We are in "extend and pretend" mode in the United States, and the shadow inventory could take many years to be sold. The government is fully behind it too. Intelligent people can argue over whether this is good policy for the nation as a whole, but there is no reason to be one of the fools that buys an overpriced home that is required to make the policy work.
Guys take a look at this property - 2137 Cedarwood Loop San Ramon CA 94582. It was on the market from May 06 (that is the date of my first comment on the property on Zillow) till 08/10/2009!! If this is the general story of foreclosed homes sitting on the market in the bay area, we should soon see a lot of impatient banks moving to unload their inventory and a further crash in the Bay area home prices!! Comment?Another thing that  I noticed is that the prices of Phoenix homes in my Zillow favorites have gone down dramatically in the past month, while the prices of ALL other homes in my Zillow favorites have either gone up or remained steady. Any Comments?