Lenders Holding onto Riverside County Foreclosures Longer
Category: Real Estate Trends
Published: Tuesday, April 21, 2009
Inland mortgage lenders are holding onto their REOs longer than normal, in hopes of raising sales prices by reducing the number of homes on the market. In recent months the flood of Riverside County foreclosures, particularly Murrieta foreclosures, Temecula bank homes and Menifee bank owned properties, have created a buyers' market and helped drive prices downward. As a result, prices have fallen 29.9% in Murrieta and 27.5% in Temecula from March of last year. With median homes prices among Murrieta bank homes hovering around $220,000, local lenders are taking active steps to reduce the number of listings and in exchange, drive prices upward.
Inland Empire Foreclosures Account for Bulk of Sales
According to market analyst MDA DataQuick, foreclosures accounted for 67% of all Inland Empire home sale transactions in March. With foreclosures making up the bulk of the market, it is no wonder banks are looking to any possible strategy to maximize their return on REOs. Considering many of the bank owned properties are homes that originally sold three, four and five years ago during the height of the subprime mortgage lending frenzy, banks are facing 50-75% losses on these mortgages at today's home values.
In an attempt to stem those losses, many regional lenders are holding off on listing their bank owned homes. The effectiveness of this strategy is uncertain however as banks typically try and clear their REO divisions of inventory as quickly as possible, believing any money realized is better than empty homes that have to be secured and maintained. So what does that mean for Murrieta and Temecula foreclosures?
Murrieta and Temecula Foreclosures Could Be Limited
Murrieta has been recognized as the national leader in foreclosed homes, with as many as 3,500 on the market during the busy summer selling season last year. Temecula, with over 2,700 foreclosures, is not far behind and consequently, these two communities are the perfect trial markets for lenders thinking about holding onto their REOs until prices rise. As a result, Murrieta and Temecula bank owned homes could be limited. Buyers who have been waiting for the perfect chance to buy a great foreclosed home at bargain pricing should act now, before the all the best homes are gone!
Oak Tree Realty Group Murrieta specializes in Temecula short sales, Murrieta bank owned homes, Winchester foreclosures and Menifee REOs. For all your southwest Riverside County real estate needs, contact the Oak Tree Realty Group Murrieta's foreclosure specialists today at 1-877-226-4800 for information on how you can purchase a Riverside County foreclosure before it's too late!
The $8,000 first time homebuyer’s credit is set to expire in November and buyers are busy finding the best deals on Murrieta foreclosures and Temecula bank homes. The team at Oak Tree Realty Group Murrieta points to possible neighborhoods for great deals on affordable Murrieta bank homes.
Murrieta foreclosures led Southwest Riverside County home sales during the month of July according to market analyst MDA DataQuick. Nearly 1,000 homes changed hands last month and the experts at Oak Tree Realty Group Murrieta put the numbers in perspective.
Buyers of Temecula foreclosures may have less competition from first time homebuyers in the coming months, thanks to a plan by the City of Temecula to complete 110 half-finished condominiums and turn them into affordable housing apartments for rent. The team at Oak Tree Realty Group Murrieta offers insight into the plan.
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