Do you know the difference between a pending sale and a closed sale?
Apparently not.
Bank lending is still in a tightening phase. The level of canceled escrows is astronomical.
One aspect of the current minor bounce is that "investors" are buying foreclosed homes hoping to rent them out.
Unfortunately, with jobs losses ongoing and unabated, those losing their homes are being turned into SFR renters. they are moving in with friends/relatives or just becoming homeless. You may want to ruminate on this thought: W/O jobs there is no recovery.
Here's your future.
articles.latimes.com
here's a snippet:
The retro prices are attracting a new wave of speculators. In April, investors bought nearly 1 in 5 homes purchased in Southern California, according to DataQuick. That figure is around 30% in some inland communities.
Mohammed Hafeez, 52, a Culver City electrician, has bought four houses in Lancaster since January.
Hafeez said he paid $49,000 for the least expensive house and $70,000 for the priciest of his investments. He's now renting them for $1,000 to $1,300 a month, and all four houses are occupied and generating positive cash flow, he said.
Still, he's holding off on more purchases. Rents are falling along with home prices as investors like him snap up foreclosures and turn them into rentals.
"I don't know how much or how far down it will go," he said.
He has reason to worry. Another tsunami of foreclosures is threatening to swamp an already saturated market. In Palmdale and Lancaster, 903 homes were sold in April, but according to ForeclosureRadar, more than 7,500 are in some stage of foreclosure. |
