As California foreclosures continue to rise, the inventory of unsold foreclosed homes has increased to more than 5,000 units as of October 20.
Nevertheless, the sales rate for repossessed houses in the state has jumped much higher compared to 2007. Of the entire 23,572 houses foreclosed by mortgage banks in the Sacramento region since 2006, a total of 18,491 have been sold. Real estate research firm MDA DataQuick also said that the sales rate for foreclosed homes has surpassed the sales rate for new homes.
The soaring number of repossessed homes is not decreasing however. California foreclosure rates continue to rise. In the Sacramento region, mortgage lenders foreclosed 7,277 homes during the quarter ended September 30, up by 32 percent from the second quarter.
What has been bothering sellers most is the rapid fall of home prices due to the foreclosures. According to real estate research firm First American CoreLogic, in one section of Rancho Cordova, 84 percent of households with mortgage loans have negative equity, collectively owing the banks $120 million more as of October because of the depressed values.
The depressed prices have made foreclosed homes the top sellers in the Sacramento real estate market, which covers four counties. Sales of bank-foreclosed homes consisted of 66 percent of total real estate sales volume in October, even though they made up only about one-fourth of the total inventory of real estate properties for sale.
According to real estate analyst Trendgraphix Inc., as sales of bank-foreclosed houses have been steadily rising, the sales of non-foreclosed homes have been flat in all the four counties.
In contrast to the selling frenzy, there is one national bank which has chosen to rent out some of its foreclosure properties rather than offer them for sale. Robert Machado, president of HomePointe Property Management in Sacramento, confirmed that his firm has signed a contract with the bank, which did not want its name known, to rent out some of its foreclosed homes.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.
Notice: In accordance with FTC guidelines, we state that RealEstateProArticles.com has financial relationships with some companies and may be compensated if consumers choose to buy, subscribe or take any action to a product or service via the links on our website. Occasionally, we receive free access to review a product or service. We do not accept compensation in exchange for a positive review. These reviews are strictly the opinions of the author.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites