O.C. distressed inventory at lowest level this year

Orange County’s inventory of foreclosures and short sales is at its lowest level of the year, with 3,713 homes, or 33 percent of the market, reports a real estate broker who regularly analyzes the local housing market.

“Everybody has heard of the infamous “shadow inventory,” but that does not mean there is going to be a wave of distressed homes to hit the market,” broker Steve Thomas says. “Instead, the market will go up or down only slightly will be very slow to change.”

Highlights of the latest report:

•Just 687 foreclosures on the market in Orange County as of July 21, with an expected market time of 1.73 months. Buyers can expect a lot of competition.

•There are 3,026 short sales on the active market, or 26 percent of all listings. The expected market time for short sales in Orange County, which Thomas bases on the rate of pending sales, is 2.83 months.

•Short sales look like a great deal, but when priced too far below market value, they bring on so many offers; they often sell far above the asking price. (Anyone have examples of this? Send them to [email protected])

•The average short sale takes months to put together, with the first lender, all junior loan holders, and, often, a lawyer for a homeowner association.

I’ve been watching some that have taken more than a year.

Reality TV spotlights foreclosures

Boom or bust, reality TV never tires of the housing market. The latest focus? Foreclosures.

They’ll be the subject of several shows in upcoming weeks and months.

From the Wall Street Journal:

“In September, Viacom Inc.’s Spike TV will premiere a new show called “Flip Men” about an entrepreneurial duo living in Salt Lake City who try to make big bucks in the foreclosure market. Later this summer, Bravo’s hit reality show about house-flipper-turned-designer Jeff Lewis, called ‘Flipping Out,’ takes a personal turn in its fifth season when it shows Mr. Lewis wrangling with lenders in a quest to buy a foreclosed house to live in. A&E Television Networks, a joint venture among Walt Disney Co., Hearst Corp. and Comcast Corp.’s NBC Universal, recently tapped a former “Survivor” contestant to star in a new show later this year about flipping houses—some foreclosed—in Houston. And DIY Network, a division of Scripps Networks Interactive Inc., has a show in development about flipping foreclosed houses that could air in 2012.”

“Flip Men,” will show the pair attending foreclosure auctions and buying homes, often without seeing them, and then trying to rehab and resell them. The Journal story says these guys have bought homes with rooms covered in mold and feces, infested by rats and sometimes inhabited by violent occupants. Also in their shopping cart were houses that squatters had turned into methamphetamine labs and homes overtaken by gangs.

Just another day at the office.

Source : http://www.ocregister.com/2011/07/31/oc-distressed-inventory-at-lowest-level-this-year/

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