The Bank Owned Market that exists today in the High Desert with the vast amount of foreclosures is likely to continue even when most of the foreclosures are sold and gone.

Short Sales will become the new inventory of homes to choose from as the foreclosure market dries up.  Let me explain: Only approximately 10-12% of the real estate market nationwide has experienced a threat or actual action from foreclosure and yet almost anyone who has bought a home in the last 10-15 years (and in some cases longer if they refinanced) is upside down in their mortgage.  The question is… How are they going to sell?  As the recession continues many people are still loosing jobs and even as it bottoms out many people will have depleted savings, maxed out credit lines and will need to move even though they have kept up their mortgage payments to date.  Even as the recession ends, for the foreseeable future, home prices are expected to see minimal price increases, so as people get transferred, retire, relatives sell estate properties, people move for health reason or have to move due to job losses they will still owe more than the property is worth.  Move up buyers are dead in their tracks, how are they going to sell the existing home, they can not.  If they do a short sale it stops them from getting a new loan for 2 years.  If they think they will rent it, forget that too, lenders are now requiring you have approximately 30% equity, in fear that you’ll walk away from the old place after you buy the new one.

The real estate market has experienced turbulent skies over the last 2 years and we are about to embark into another period of uncharted territory.

For all of your Victorville CA Real Estate needs: visit our web site at http://www.HomesOfVictorville.com 

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