“Shadow housing inventory” not yet a factor in SacramentoPosted: October 18, 2009
We hear a lot of warnings about the flood of foreclosures that will occur once banks unload their “shadow inventory” of homes. But after months of these warnings, some real estate observers in Sacramento are beginning to express doubts that the flood of foreclosures will ever materialize:
People who watch housing prices have predicted for months that another deluge of foreclosed homes would soon hit the market – once again crushing Sacramento-area property values. But the flood of bank repos hasn’t materialized. And now, a leading California foreclosure analyst says it probably won’t. “From the things I’m seeing, there’s not going to be a wave any time soon,” said Sean O’Toole, president of ForeclosureRadar, a Contra Costa County firm that tracks mortgage defaults and foreclosures.
The article goes on to say that bidding wars have become common in Sacramento.