In-depth statistics about the Sacramento area real estate market.
Thought I would report, I attended a "shadow open house". The bank owned home wasn't listed on the MLS. The agent was playing the "get the deal" before it goes public angle.Surprisingly large turn out...not sure how people knew about it.
BT, as I posted on Sac Landing, my girlfriend ran into the same thing. She had two lists forwarded to her by brokers of inventory not on the MLS. She's going to send me a copy so I can double check it against old listings that sat pending then dissappeared with no sales transactions. If what I think happened did happen, that spring selling season may have been nothing more then a huge marketing scheme.
Thought I would report, I attended a "shadow open house"Interesting. Information asymmetry at work once again. I wonder how long people will fall for crap like this, since credit is really starting to dry up?Reminds me of the "auctions" they were doing 6 months ago. I wonder how many of these "secret" open houses are going on...
Hey, whatever it takes, I guess. It's kind of like these pants I just bought: 40% off, plus take an additional 40% off. "Well, that's 64% off! I'm getting $60 pants for $22 bucks! It's like they're handing me $38 bucks! It's the deal of the century!" No, they're just $22 pants that were once marked at $60 to see who would bite. $22 is a reasonable price, but they're telling me it's a sale on a sale on a sale, and boy am I lucky I randomly walked in today! I admit, it makes me more likely to buy--don't miss the sale! Ha.Your graphs are great comfort to me. They remind to bide my time.
Speaking of auctions...there was a home that was "auctioned" recently. Opening bid 219K, but the bank wasn't planning to let it go for less than 550k. Very frustrating....we didn't even bother to attend once we found that out. Needless to say, it didn't sell.
"I wonder how long people will fall for crap like this, since credit is really starting to dry up?"Seems there is no shortage of suckers and knife catchers. If Wells can close on the Wachovia deal, don't be surprised if this is the trigger that allows them to dump their 12K houses on the Sac market. It will be similar to your earlier statement that once some large banks fail, the shadow inventory will come to market. Once they are made whole so they can absorb these losses, there is no reason for them to keep a book of depreciating assets so they will let them go, fast.Then we will get to see all of these knife-catching geniuses that have bought houses in the last year cry in their beer as prices go WAY LOWER. I'm talking mostly of these specuvestors that believe the foreclosure they just bought will be a great investment. Sorry, it won't be. It will depreciate badly and rents will be going a lot lower for years as we head into depression. For rents to rise there has to be a good economy with rising wages. We are looking at exactly the reverse.
Have noticed the same shadows around our little area as well. Not only are some houses that disappeared from MLS still being marked as active and updated on Zillow, there are owners still interested in selling once the market 'comes back'.
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