Gary Wuestenberg's Blog

Just read this from the California Association of Realtors: On average, inventories of California homes priced less than $300,000—the most-popular price point for foreclosure buyers—have shrunk from a nearly 10-month supply a year ago, to less than a three and a half-month supply in July, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

Instead of holding onto homes in hope for the best offer and in the process incur additional expenses like property taxes, maintenance and utilities costs, the banks are selling these homes as quick as possible.

What’s ahead – more foreclosures and an increase in inventory. I don’t anticipate a glut of properties coming on the market as in 2007 and 2008. Rather to keep prices from dropping they will gradually release them. As we know, the lower the inventory the more it becomes a sellers market. And a sellers market means that prices generally go up.

Thanks for reading.