Four times in the past ten days, I have written contracts on REO properties.
Four times there have been multiple offers. Four times the homes have sold for OVER list price.
All of a sudden, I can't get my clients to new REO listings fast enough to write an offer.
I have spoken with major REO agents in town who confirm that their reality mirrors mine... a major dropoff in REO listings and intense competition for the ones that are structurally sound, priced right and in decent condition.
I strongly suspect the days of lowballing the bank are over, or at least on hold for a while. I really believe buyers have run out of excuses, and there is a shift in psychology taking hold right now that is going to change the dynamics of our market.
Once the foreclosure inventory burns off, with highly (even overly) qualified buyers replacing a generation of subprime borrowers who paid too much for homes, where does the market go?
The way it looks now, waiting equates to fewer choices, more competition and, most likely, higher interest rates.