Deeply Discounted Foreclosed Homes Not Selling

[jeffrey]

Another foreclosure record was set in November as 1,336 properties were offered to the highest bidder on the courthouse steps in Modesto, Merced and Stockton.

Now here's the real surprise: Only 17 of them sold, despite lenders offering deeply discounted prices.

Every weekday, starting about noon, auctioneers seek buyers for foreclosed properties of all shapes and sizes. But more times than not, no one bids.

The Modesto Bee | Bargain houses largely unsold

[Aleta]

Jeffrey: There are a lot of advisors that I have seen on TV tell sellers not to sell now and for buyers not to buy. You end up with a Mexican stand-off. I have seen this advice on top news agencies.

[Broken Arrow]

Not selling makes sense to me, but I don't see why it's a bad time to buy... provided that one has the means to do so.

In fact, with all these foreclosures and likely discounts, it would seem to me like a great time to buy.

[MonkeyMama]

Stuff isn't selling here right now, but it's Christmas. For Sacramento, this trend can not continue. All my friends who have priced out are starting to look. The price difference between here and the Bay just went to a good $700k. It can' stay like that; they'll swoop in.

I see people reluctant to buy on the way down though.

A lot of friends in the Bay who don't realize the steals in outlaying areas. When word gets out, I expect things to level off. For now there is a lot of caution.

Heck if prices get any lower than this; I am going to buy some real estate investments... We were so ready in 2005 BUT felt prices were way too high. Suddenly there are $250k houses on the market when we were looking at $300k condos 2 years ago. It's getting tempting to me.

It is just interesting too watch. I see a lot of interest but a lot of reluctance. Who knows how far prices will drop in the meantime.

[sounderella]

Sadly our real estate firm has several foreclosures. I've watched the trend and can't figure it out. Some we get, go under contract before we can even get them listed to the public....others just sit and sit. I wouldn't consider price because they're usually about the same. Usually those that go under contract real quick are the investers and do cash sales. *Not always, but usually* It's a great time to buy if you're able to get a loan. That's the big problem. It's so hard to get one now.

**Disclosure: By no means is Sounderella an expert. She merely writes what she observes**

[mom-from-missouri]

It is slow. Very slow. I have a house I have been trying to sell 2 years. I have tried 3 different real estate companies (there on only 3 in that town) . They all tell me the same thing. They aren't selling, they only show 1/3 of the homes they used to show...
Now, the rental market is slowing down in that town as well. I have several friends who have apartment complexes who tell me students are moving back home with their families due to prices going up and wages not going up.