That's right, Bakersfield made another top ten list. We are eighth among the nation's 100 biggest cities for foreclosure activity during the first 6 months of the year according to an article featured today on the Californians website. It goes on to say that 1 out of every 47 households has had a foreclosure filing. Hey we are better off than Stockton where it is 1 out of 27.
That is definitely not good news but I don't think it is as bad as everyone has expected or as bad as what many have predicted. Heck if you took out the hundreds of homes and affected homes that one self proclaimed "Real Estate Mogul" personally screwed up we might not have even made the top 50! I heard the other day from an owner of a mortgage company that we would be looking at a 50% foreclosure rate. REALLY??? Because if that happens we might as well shut down Bakersfield and try again down the road.
I think the important thing to keep in mind here is that the old saying of "everyone has an opinion and they all stink" holds pretty true. No one knows exactly how things are going to play out but it does not look like the doom and gloom scenario's are all that likely. I will do a little research on this but I think there have been times in recent history that the foreclosure % was even higher than it is now. Please let me know if anyone has any details on this.
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3 comments:
Good News Bad News
In this market 1 in 47 aint bad, I see this market as two sided the good news is I can look for a deal for a buyer, once the property is a REO or a bank owned property its priced comparably with like properties in the neighborhood. Now the prudent buyer looking for a good deal shouldn't think he has more time to wait for the bottom to fall out. The reason is that if the Fed's raise the interest rates your payment may be higher than what’s available right now. So if you or any other buyer is waiting for that good deal, don't be caught with your pants down. Talk to you loan agent, get prepared and make the move before you can't. The bad news is it is unfortunate that some investors have played the wrong card and lost. It goes on and on, buyers being taken to the cleaners by unscrupulous agents such as the aforementioned. Straw buyers and just downright bad investing have helped get us where we are. We had a fantastic few years for appreciation and now we will experience a few years of depreciation. Now with all that said if there are buyers on the fence don’t hesitate to get in touch with an agent and make that American dream come true.
Realtor Ron
Ron,
I agree completely, there are some really good deals out there and a rate of 6.75% is not bad at all!
The numbers don't surprise me at all, but I really liked Karpe's comment on the news yesterday that the people who are really getting hurt are the neighbors who will get a lower value for their home if they choose, or have to, move up, down, or out of town.
Clark Cranston
McKinzie-Nielsen Real Estate
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