Where have all the listings gone?
Unless you have been trapped in an in-law unit in the Sunset district, most people in the real estate market (mostly buyers) continue to complain about the lack of listings. Where have all of the listings gone? To be more specific – where have all of the REO listings gone?
This dearth of listings didn’t come about by accident.
Don’t fear as REOs will again be liquidated by Fannie and Freddie after the presidential election. Until then, don’t expect a lot of REOs to hit the market. Consider another reason that Fannie and Freddie may not liquidate properties comes due to their obtuse valuations. With their out of whack value figures of many properties, they will not dare release REOs now because they have the belief that they will take an economic bath with them.
Our distressed property guru Lee Honish claims that this REO freeze might be considered a political charade.
Halting the REO sales freezes the downslide of values and makes it a “sellers” market which in theory means that property values should rise or at least plateau values.
The End Of The REO Cycle at least until November
Honish predicts that once the November election pass then REO liquidations will once again occur or worse our government will go into the business of being permanent landlords.
Beware for the next seven or so month and don’t be lulled into what the banks or government says about this false sellers market.