California Sales Up, Prices Down, 47% of Sales Foreclosures
- Sunday, October 12, 2008, 11:00
- Real Estate
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It looks like the great flush out of the California real estate market is underway. Banks recognizing that they are not landlords have decided to drop the prices on their foreclosures and they are being snapped up by eager buyers.
All of this information is both horrible and great at the same time. It is allowing the worst hit markets to regain their equilibrium while at the same time creating a solid bottom. There is so much foreclosed upon inventory that has to be absorbed that it takes a catharsis to clear it out and it breaks the last vestige of the banks that the old asset value is gone.
But when the bottom occurs and the losses are absorbed, then something magical happens. People can have a reasonable expectation of owning an affordable asset while having the chance to make a profit. So the market starts up again and fear goes away.
So if you are caught in this storm on the wrong side, you have my empathy, but the market is running it’s course. For all others we may just be heading closer to the other side of the tunnel.
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