I watch the Happy Valley & Clackamas market very carefully, with Happy Valley imersed in short sales I think it’s a good sampling of what’s to come for the other areas of Portland. Here’s what I see for 2009.
Banks will continue to fail at establishing a process whereas home owners can sell their home short (sell as a short sale) in a reasonable amount of time. SO short sale homes will continue to add to the inventory and clog the system because the banks can’t process fast enough to keep the short sales selling and moving from the inventory. Sellers will become more desperate (and frusterated) and will have to walk away from their homes or will just give up trying to work through the short sale process all together.
Then what…. the bank’s inability to adapt (quickly) will cause more homes to fall into foreclosure and therefore become REO, bank owned inventory. The banks will continue to fail to adjust to a changing market and the market will become flooded with more foreclosed homes.
The good news? Foreclosed, (REO) bank owned homes are MUCH easier than short sales (and quicker) and the pricing is just as good if not better!
Having closed several transactions recently on foreclosed homes, I can say that with exception to an occasional surprise (such as an IRS tax lien), they are fairly painless transactions.
Moral of the story? Watch those bank owned ones! They are listed in RMLS like any other home on the market; you don’t have to go to the courthouse, or stare down the Nickel Ads… just ask your agent. And the best part? RMLS recently added a search feature for agents allowing them to search specifically for bank owned!
Ask me about it! -Kristie (503) 577-9395
Tags: Bank Owned, foreclosure, market trend, REO, short sale