Since everyone is watching trustee sales so much I decided to generate the San Diego version of the trustee sale chart that I generate from ForeclosureRadar. I added in a new chart showing the percentage of 3rd party sales relative to total sales for the month. Note June sales are through Friday the 26th.People are looking at the market and wondering if the bottom is in, at least on the low end. We have a tax credit, low inventory on the low end, around 5% interest rates and high use of FHA borrowers. I think the a lot of people "bum rushed" the market at the same time causing this phenomenon. The investors see the low inventory and new higher supply of trustee sales and see at the very least a temporary opportunity to get out ahead of the market and make some money. While I do feel this is an interim bounce on the way to the bottom I think watching what investors across the state are doing will be a leading indicator for what the market is doing. When/If prices start falling (on the low end) and/or supply builds again the investor activity should moderate as they will be forced to shy away from some of the more marginal deals that I feel they are buying today.
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