My neighbor and landlord is a California Real Estate Broker who owns a local real estate brokerage here in Temecula, California. He has bought and sold real estate here for the last 12 years and has told me that he has seen it all, until now. We shared a cold Corona Light together as we walked my property and he proceeded to tell me me that he hasn’t seen anything like he is observing now in the local market.
He said that banks are purposely not placing repossessed foreclosed homes on the market because they are trying to reduce property inventories and artificially control supply and demand. Thus creating multiple offer situations on bank owned properties and what equates to a buyer feeding frenzy on newly listed homes.
He said quite confidently that the price range that is selling like Cheeseburgers at McDonalds is the median priced homes from $150,000-$300,000. I then said this must be ”McValue Homes?” He laughed and concluded by telling me that the mid to higher priced homes continue their downward slide and continue to remain on the market for much longer periods of time.
This isn’t the first time I have heard of banks sitting on housing inventories lately (AKA shadow inventory) and this credible information coming from a credible real estate dude confirms this new bank owned real estate trend.
Quite honestly this seems a bit like unfair and deceptive business practices.
Who is this unfair too?
I feel it is unfair to the millions of homeowners who are trying to sell their homes and have to compete against these banks and these huge inventories. They are using price manipulating techniques in order to control the real estate markets and that is downright deceptive.
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That is indeed unfortunate that banks are resorting to such practices, especially considering buyers already have it tough as it is.