As a brand New Year rushes toward us, many of us involved in Orange County real estate are asking a key question -- What will banks do with all the distress inventory they’ve accumulated? You’ll be pleased to know I’m about to offer an eye-opening prediction on that very topic. But before I impress you with my prognosticating powers, I’m going to prep you with --
The Truth About Lenders
Banks seldom if ever lose money on Real Estate in Orange County or any other location. Sure, they wail and moan about getting hit in the chops by the recent recession. They even give the impression that they’re clueless, helpless victims facing an onslaught of financial setbacks. But it’s all a smokescreen. A ruse. Banks actually are smarter than all the rest of us combined. Sort of like the recent gopher invasion at my home – always one step ahead and able to outmaneuver any and all market forces.
How smart are they? Well, for starters, they were savvy enough to hustle and keep mountains of ‘TARP’ money -- which, by the way, filled their pockets with generous amounts of interest income. And all those short sale losses they’re ‘forgiving’ are being safely covered by any number of handy offsets. Many stock prices have dwindled to 3 or 4 dollars during the recent recession. But B of A shares have jumped by 30%; Citi Bank, by a staggering 300%! Still think banks are helpless victims?
OK, you’re fully prepped with my banking back story. Now it’s time to gaze into my crystal ball and answer the burning question –
Will Banks Let Distress Inventory Go in January?
The answer is YES. But it won’t be a gusher. It’ll be a trickle. Banks will ease distress properties back into the market, delaying the processing of short sales. The delaying tactic, of course, is intended to prevent oversaturation and keep prices healthy. Lenders will maintain this sensible course as they watch the national Real Estate market vigorously move north. And before you know it, all the people poised to short sale their homes won’t need to short sale anymore. Demand will have risen high enough to lift distress properties back to levels close to market value.
Well there you have it. My humble year-end prediction. But I’m sure you have your own views on the matter. So I’d like to know what you think – Will banks unload all their distress properties at once, or trickle them in?
If you’d like to learn more about distress sale opportunities in the Orange County Real Estate market, be sure to drop a question or two into the comment box. Or simply contact the caring professionals at The Coastal Property Experts today to schedule your complimentary consultation. We promise you’ll get what you want in the Orange County Real Estate market…much sooner than you think.
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