Distressed Inventory Report 7-10-10
The numbers just keep creeping up. No big spikes and the numbers may be peaking but they are still increasing; not holding steady or declining. Again the listed invetory for distressed property is not climbing in relationship to the actual inventory of Distressed Property. Looks like the new distrssed inventory will not be coming to market until September or October. The question is how big of a depressive effect this will have on the market. General rule of thumb on market timing is to buy on the backside of the distressed inventory decline and at the peak of the MLS listings. Those people who did that in Q3 2009 got some of the better transactions. However overall I would say the quality of the inventory is declining. The distressed new construction is almost gone except for unfinished homes and the distressed homes coming to market are not in that good of condition. Buyers want the homes in good condition because they do not have the money to fix them. As a result many of these homes will need to be sold at steep discounts which will overall be a depressive effect on prices for the new few months at least.
The spreadsheet is here: Bellevue Foreclosure Report 7-10-10