REO’s Jump 22% in California

by Andy on November 20, 2009

From DSNews:

After three months of consecutive declines, the number of foreclosed homes in California taken back by banks rose by 22.24 percent from September to October, according to ForeclosureRadar, a local property information site that tracks every foreclosure in the Golden State and provides daily auction updates.

The company’s tally of new REOs is a 20.95 percent increase compared to October 2008, but despite the seemingly dramatic mushrooming, the latest numbers are still well below record levels. The number of foreclosures repossessed by banks in California last month remains 42.56 percent below the peak reached in July 2008, ForeclosureRadar’s data shows.

This coincides with what we’re seeing as well. It will be interesting to see what happens in the coming months.

The number of properties entering the foreclosure process keeps outpacing properties actually going to auction & either being sold to a 3rd party, or being taken back by the bank.  Event with this slight increase, the foreclosure funnel is bulging and I expect this gradual increase in REO’s to continue.

  • It still is a seller's market.

    The supply is coming, but gradually. We're just starting to get our recent wave of REO assignments onto the market as we continue to get a slow but steady stream of new assignments which are then added to our pre-list queue. Looking at skyrocketing number of active foreclosure auctions, where there process has been started, but still pre-sale, I expect it to continue at at least this pace.
  • A. Lewis
    So how do you reconcile this with Glen's Numbers seeming to say there's no supply?

    I've heard others generalize there is a ton of shadow inventory, but Glen's report makes it sound like a seller's market. What's true?
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