More foreclosures = decreased home prices and home values...

So first I need to apologize for taking so long to get a blog written. It seems I underestimated the amount of time needed to run a business. The good news is Capital West Realty is running strong, with three new agents! Scary I know, I am an employer. =)

Now that I’ve apologized, let’s get down to business.

About three times a day I get sent articles that relate to Real Estate and market trends, and the other day, one in particularly sparked my interest:

Surge in default notices portends more REOs

So if you have time you can read through it.

It has some pretty scary stats pertaining to foreclosure rates here in California, compared to those of the entire US. If you don’t have time to read it, that’s fine too, cause I will break it down for you. =)

According to RealtyTrac (which is a foreclosure tracking website) “foreclosure filings (including default notices, auction sale notices, and bank repos) went up seven-percent in August 2011... In fact, “default notices alone, went up 33% since July 2011.” That’s the biggest monthly increase in defaults since Aug. of 2007.

Now, “Notice of Default” is the first step of the foreclosure process… Usually the banks send out these notices after the mortgage holder hasn’t made a payment in three months… The letter, or “Notice,” usually says something like; Hey, you haven’t made a mortgage payment in three months and if you don’t make one soon, we (the bank), have the right to pursue taking the home back…

So basically this article is saying we will be seeing a lot more foreclosures in the near future… What is even more interesting, is that California has the highest percentage of these default notices in the nation.

“Calif. 55%, Indiana 46% and New Jersey 42%” – RealtyTrac.  

Considering California already has the highest number of foreclosures in the US, (1 in 226 homes in California is in foreclosure) this latest jump in defaults, means soon, even more foreclosed homes will be on the market.

So if anyone has been holding out on buying a home, now is the time to start looking and getting finances together. That home that sold for half- a-million-dollars two years ago, could soon be hitting the market for well less than that…

On the flip side… If you’ve been looking to sell your home, because so many homes are in foreclosure and selling so cheap, the value of your home is decreasing also... This means if you list your home, you may have to settle on selling it for less than what you purchased it for.

So more foreclosures = more inventory = depressed prices… Depressed prices mean a slow real estate recovery for the next few years. Remember, we can only say we are in an actual “RECOVERY” when home prices are higher, and people are actually making EQUITY on their investments. That is something I just don’t see happening while more and more foreclosures continue to infiltrate the market.

If you’ve been thinking about buying or selling, let’s talk. I am a short-sale and foreclosure pro, and can make sure you get exactly what you are looking for and understand ALL your options.

Until next time,

CP

(916) 834-7003

PS: Here are more of those “scary” stats I was talking about regarding California’s foreclosure rates:

- RealtyTrac:

-A quarter of all foreclosures in the US are in California.

-Eight of the top 10 metro areas in the US for foreclosures are right here in our backyard:

Modesto = 2, Stockton = 4, Sacramento = 7.

Hello & Welcome!!

Well... here we go. My first blog...

First off, thanks for stopping by. If you know me, you know I am new to this "blogging," "social networking" thing, and decided to kick things off this week with some information on what you will find in my new REALty Talk blog, and why I have a new work home...

 

I would like this blog to be a forum for information regarding trending issues in the real estate world, and where I post interesting stories and situations I come across in my daily duties. So after today, make sure you stop by occasionally to read up on new information or experiences I come across, and hopefully what I post will help you in a futre real estate situation.

 

Now to the BIG news me and my family are excited about!!! After 8-years of working for Lyon Real Estate in West Sacramento, my business partner, Marty Swingle and I, have decided to venture out on our own and open CAPITAL WEST REALTY in West Sacramento, specializing in real estate in West Sacramento & the surrounding areas. I have to admit, it was a really tough decision to leave Lyon. They gave me my start in real estate, and gave me the financial tools that allowed me to buy a home, start a family, and most recently, become a business owner. This move is nothing against Lyon, owning my own Real Estate company has just always been a dream, and now was the time to take the leap...

For those of you wondering, our new office is right behind Squeeze Inn on Harbor Blvd, in West Sacramento. The actual address is 1355 Halyard Drive #100. my number is the same, 916-834-7003. please call if you have any questions or email, chris@capwestrealty.com

Otherwise, let's meet here again in a few days!

Thanks for all your support,
-CP