Courtesy of Trendgraphix this chart highlights the rocketing number of bank owned (REO) properties on the market in the greater Sacramento region. Seeing the rate of growth really drives home the state of the market. Of additional note is the rapid rise in pending sales of bank owned properties – pending sales are growing much faster than sales of homes in general. The bottom line is that 1) REO properties are a significant part of our real estate market right now, and 2) There are buyers for property in the market...when it is priced right. The challenge for non bank owned sellers is that the region has been flagged as a “declining market" which means tighter lending and appraisal standards. The last 90 days of comparable sales carry the most weight with appraisers, and REO comparable sales are valued at "face value" – meaning that even though they are a REO property they count as a comp for a home.
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