Monday, March 9, 2009

The Irony

Seems Sacramento is now being used as a beacon of hope....we made the NY Times.

"In inland areas of California, for instance, sales are surging now that prices have fallen sharply. But most of the sellers are not individuals but rather banks that foreclosed on homeowners who could not or would not pay their mortgages."

4 comments:

Bryan said...

Heartening...if unemployment weren't nasty and rising. If most other aspects of the economy were at least in reasonable health if not robust. If businesses weren't closing...etc etc.

Husmanen said...

And a great number of the homes purchased by investors...

Jacob said...

Yeah too many investors in the market. Just like those liquidation "sales".

Everything is 50% off, too bad the starting price is 200% above what it should be.

Investors snapping up everything in sight below $250k thinking they can rent for cash flow and sell for a huge profit when prices "return to normal" As if they aren't returning to normal now...

Rents are declining and a lot if not all of these investments will be right back on the market.

And add to that the issue of the banks having a backlog of years and years of inventory not on the market.

Deflationary Jane said...

193k for EG is overpriced. That puppy would rent for 1250 mo., just to provide a little perspective.