AgentPrint

And Here We Go…..Again

31st July, 2009 - Posted by admin - No Comments

So I’ve heard from a number of Realtors that they think the market is about to turn because of their conversations with buyers and there are sellers if the prices come back when the foreclosures stop. At Agent Print we’re here to support Realtors and unfortunately at this time I have to be the bearer of bad news…..at least when it comes to the California real estate market.

This article in the LA Times talks about the new rate of default across the state and in LA in general. The statewide rate is suddenly 9.5% as of June of 2009.

The elephant in the room is that 60% of those defaults are going to lead to foreclosures. For reference a year ago the state had a rate of 6%….which has been too high a number for the banks to process REO’s. Locally in San Diego we’ve heard from plenty of people who haven’t made a payment in close to a year, without ever getting anything other then a letter from their bank reminding them to send a payment.

Another big elephant in the room: what if that default rate finds its way into the commercial real estate market? What happens if the government has to raise interest rates to stop inflation after the large series of cash injections into the economy? Can anyone paint a realistic picture about how the market turns around in California within a reasonable time frame?

Right now I can’t.

Since I can’t, we’ll focus on providing more foreclosure resources for Realtors as they come available as well continuing to help you build your web presence for when the market does turn around…or at least so you can find plenty of first time buyers in the interim.