“In a strange way it’s actually a good sign that we’re seeing a lot of foreclosure sales.”
Because he says even though foreclosures can drag down a neighborhood’s home prices, the more that sell mean fewer to bog down the market.
The foreclosures sales are down 20% from the same period last year. But Blomquist doesn’t expect that downward trend to continue. He says lenders are starting to repossess more homes. That means more bank-owned or REO properties on the market…and high levels of foreclosure sales for another year-and-a-half.
“It’ll take that long for the banks to really clear out their inventory of REOs.”
California has the second highest percentage of foreclosure sales in the country, right behind Nevada.