30% to 50% Discounts on Foreclosed Homes in San Diego

[Demeter]

30% to 50% Discounts on Foreclosed Homes in San Diego

An auction of nearly 100 foreclosed homes in San Diego on Styrday showed that mortgage lenders are having to accept huge discounts in some cases to unload such properties, reports James R. Hagerty at WSJ.

Rather than relying on real-estate agents, the usual practice, some lenders are turning to large-scale auctions to speed up the sale process.

Real Estate Disposition Corp., the Irvine, Calif., company that organized Saturday's auction of lender-owned homes, plans similar sales May 19 in Los Angeles and May 20 in Riverside, Calif.

At the San Diego sale, houses and condos typically sold for about 30% below the previous sale or appraisal prices. In a few cases, the discounts were around 50%.

Ramsey Su, a San Diego investor and former real-estate broker specializing in foreclosed properties, said prices were surprisingly low on some homes and the auction showed that "demand is not that strong."

A glut of condominiums also is weighing on the market. Peter Dennehy, a senior vice president at Sullivan Group Real Estate Advisors, a research firm here, estimates that at the current sales rate there are enough condos on the market to last about 29 months.
Labels: RealEstate

posted by Raymond Weber @ 12:02 AM
http://www.economicpolicymonitor.com/


The meltdown has begun!

[On the Road]

1. I Have Got to Find Me One of Those on the East Coast

I have several very cheap rental properties in Baltimore, but ironically prices are so high near DC that I haven't been able to afford a primary residence.

Anyone know about how to locate these things?