The Housing Chronicles Blog: Stockton or Bust

Friday, January 18, 2008

Stockton or Bust

"Price is king," said Jerry Abbott, president and co-owner of Coldwell Banker Grupe, Stockton.

According to a story in the Stockton Record, falling prices in this Central Valley region have helped spike sales, which is important for an area in which 70% of recent sales are foreclosures:

Foreclosures are accounting for about 70 percent of the monthly sales, he said, and investors are accounting for about half the buyers.

But unlike in the real estate boom years, these investors aren't "flippers" - buyers looking to resell in a year or two to cash in on fast-rising equity. Now they are looking for long-term investments, he said, and prices are low enough that monthly rental fees basically can cover the mortgage payments.

Finally, a return to fundamentals.

...since November, asset managers who control bank-owned foreclosure homes have lowered prices aggressively, and foreclosure homes are selling at about 95 percent of asking prices. Getting as many as four or five offers on a foreclosure house is almost commonplace these days...

Take that,!

No comments: