Jan
11
2013

Sean O’toole’s California Forecast for 2013

Interesting article from www.foreclosuretruth.com

http://www.foreclosuretruth.com/blog/sean/california-forecast-for-2013-more-of-the-same-save-the-black-swan/#comments

I actually agree with most of this article, with my key thoughts being:

  • In our neck of the woods trustee sale investors (think large suitcases full of cash on the courthouse steps) are seeing more competition but still finding amazing deals.  Most are not banking on large ROI’s anymore, just looking to make a few bucks.
  • I think we will indeed see more renters, but because our rents are so high I don’t think we will see as much of an increase here as in areas outside of the bay.
  • Housing prices will continue to rise but the rate of appreciation will decline.
  • Our area saw a HUGE increase in the $million+ market- that will continue, but the $600k – $1mil range will be tough.
  • Appraisals will still suck.  Too much inconsistency in the market.
  • It will take longer for a buyer to get into their house, not just because they have to write a gazillion offers to get one accepted, but because the likelihood that their accepted offer is a short sale will be higher.
  • And finally, the most interesting thing to note is the LAST line: “And no, there will still not be a wave of foreclosures.”  Boo-yah.