How many foreclosures are about to hit in the city of merced?? How much will it effect the housing prices??

Asked by Chiropaul, Merced, CA Wed May 6, 2009

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Steven Ornel…, Agent, Fremont, CA
Thu May 7, 2009
Hello again Chiropaul,

I count about 1,169 properties that are classified as "distressed". To see the locations of these refer to:
http://www.foreclosureradar.com/free-foreclosure-search.php

It's really difficult to estimate the effect on housing prices except to know that this means downward pricing pressure. In 2008 there were 78,189 households in Merced County [ https://edis.commerce.state.nc.us/docs/countyProfile/CA/06047.pdf ]. While the 1,169 represents only 1.5% of housing stock, the real metric to focus on is months of supply based on sales activity (best to get this number from a local Realtor). This is basic supply/demand.

Jobs creation is the lynchpin to any market recovery. Merced's own Sun Star had this to say:
http://www.mercedsunstar.com/167/story/749069.html

“Merced County’s unemployment rate climbed again last month, to 19.9 percent. That’s up considerably from January’s 18.9 percent and the county’s year-ago unemployment rate of 13.6 percent. Joblessness here is now quickly approaching the highest level ever recorded, 21.7 percent in February 1996.”

And as you well know, the Bank's still have plenty of REO shadow inventory!

Best, Steve
1 vote
Grace Hanamo…, Agent, Cupertino, CA
Wed May 6, 2009
Hello Chiropaul and thanks for your email.

According to my database, there are approximately 240 homes scheduled for sale in Merced over the next 30 days. Keep in mind, however, that not ll of those homes that have been slated for sale will actually be sold. Many may be redeemed (the outstanding balance paid) by the homeowner prior to sale or delayed by the lender in an agreement with the homeowner to sell the property or accept a deed-in-lieu. The best way to determine exactly how many homes are actually sold in Merced is to contact a qualified real estate professional to assist you in obtaining accurate and updated data on the available and pending REOs in your city.

Unfortunately, as with all areas of California where REOs are entering the market, housing prices in some areas do adjust downward with additional supply of homes, while other areas are not as drastically affected. The only good bit of news is that, depending on the condition of the home and location, lenders may take between 2 weeks and 90 days to list the home for sale, so new REOs are being set for sale over a longer period of time, rather than having all 40 or 50 homes hit the market at the same time.

For more information on your particular community, speak with a qualified professional Realtor in your community.

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
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