Number of Sacramento Unsold Vacant Homes Continues to Climb
May 29th, 2009 Categories: Real Estate News, Real Estate Trends, Sacramento RE Stats, Sacramento Real Estate
I have heard from several real estate ‘old timers’, who were for the Sacramento Real Estate crash in the 90’s, that it is looking a lot more like Déjà vu; Remember Resolution Trust? The government must be stepping in to slow the tide of incoming listings, in order to support market prices, and stop the free fall of real estate prices. So, much like they did with the Resolution Trust Corp. in the 80’s and 90’s, homes will just be trickled on the market in a more orderly fashion. I can remember vacant homes for years in the nineties… will that happen again?
The Government will systematically take the bad loans, and the subsequent foreclosed homes, off of banks books, as they take failing banks over. They will then handle the liquidation. FDIC, Fannie Mea, Freddie Mac, FHA, they would all have an incentive to support the market by slowing down the rush of inventory that would be created if they all hit the market at once.
The number of unsold homes in inventory here in Sacramento; now approaching 25,000 properties that are vacant, but not on the market will probably continue to rise… The ‘Tsunami’ of foreclosures will not be stopped, it’s just that the number that actually make it to the market will be a much smaller number, and will help support Sacramento’s home prices.
Statewide,there is now 4.6 months of inventory of unsold houses. Supply was as high as 16.6 months in January 2008.
FDIC Contracts Next Wave Advisors for Real Estate Services
The FDIC has certified Next Wave Advisors Inc. to assist the agency with a variety of real estate services, including lender workouts, asset valuation, and disposition of property acquired through bank takeovers and liquidations.
The FDIC has already stepped in to close 36 banks this year, and has placed 305 institutions on its high-risk watch list. But Next Wave president Dean Lyons says the new venture has “the bench strength and financial resources to handle anything that the FDIC can throw” its way.
Next Wave is a joint venture between two Southern California companies, Third Wave Partners and The Moote Group, and Houston-based Portfolio Property Advisors L.L.C. The new firm was created to fulfill FDIC assignments related to problem banks and the recapitalization of acquired assets.
All three principals in the joint venture have experience with FDIC asset portfolio liquidation. All three participated in the Resolution Trust Corp., formed during the savings and loans crisis of the late 1980s to early 1990s.
