Core Logic and AOL Real Estate are estimating only 10 to 15% of bank owned properties are for sale. Price Fixing???

Asked by Midtown Bookie, Auburn, WA Wed Jul 18, 2012

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Kary Krismer, Agent, Renton, WA
Wed Jul 18, 2012
BTW, please provide a link indicating Core Logic thinks that is happening. I suspect it's just the AOL Blog that thinks that is happening after looking at Core Logic data. That's all I've seen, but if you have something more, please post it.
0 votes
Flag Wed Jul 18, 2012
Kary Krismer, Agent, Renton, WA
Wed Jul 18, 2012
I don't think AOL RE understands the data which they are looking at. At least locally that is not the case because there are not a significant number of foreclosures in excess of bank sales. Even if you go by Notices of Trustee Sale documents, which would greatly overstate the number of properties, that is not happening locally.

http://seattlebubble.com/blog/2012/07/12/foreclosures-keep-c…

The banks have typically been selling between 250 and 300 properties in King County every month. The claim simply doesn't seem to be valid.

Numbers from NWMLS sources, but not compiled by or guaranteed by the NWMLS.
0 votes
Alain Picard, Agent, Puyallup, WA
Wed Jul 18, 2012
It is believed by many that if the banks would put all of the properties that they owned on the market all at once it would drive the market further down and hurt our economy even more.
0 votes
Ron Thomas, Agent, Fresno, CA
Wed Jul 18, 2012
In the past, the Government did not want Banks to be Property Owners:
They were discouraged and actually penalized for holding on to them too long.

Right now, it seems as though that is not the case:
We suspect that the Banks are holding a "shadow inventory" of homes, waiting for the Market to recover before they release them. Estimates vary; and probably no one knows how many.

Is this "price fixing" ? probably not, because there is no "collusion"; is there?
0 votes
Thank you for your response. Seems to me there is more than one bank with REOs in the United States. If there was only one mortgage lender, that would be a monopoly. But more than one bank limiting supply wreaks of collusion. JMO. With the direction of all leading economic indicators pointing down, how can the housing market truly, really, sustainably be going in the opposite direction. According to Case Shiller, home prices are still 30% above their 110 year historical price/affordablility norm. Massiving deleveraging by the consumer, lack of banks lending, global recession looming are only adding to my doubts that the U.S. housing economy is recovering.
Flag Wed Jul 18, 2012
Tim Moore, Agent, Kitty Hawk, NC
Wed Jul 18, 2012
That alone would not meet the requirements of price fixing.
0 votes
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