Los Angeles 2010 Trustee Auction Foreclosure Futures

As we reach the halfway point of 2010 it is a great time check out where we've been and where were going. In Los Angeles the income trends happen to be predominantly very positive. The volume of income is up and in May of 2010 the median price was 22% higher than May of 2009. But a look behind the numbers reveals some intriguing questions.

What amount of the gain is attributable to the massive government residence buyers tax incentive?

Answer. A lot.

But in Los Angeles how much difference does a $8,000 cash incentive influence a median priced household sale of $300,000? How very much does it affect the selling value and how much does it impact the volume of revenue?

In 2010 I predict we will see a temporary drop-off from the volume of foreclosure sales and a slowing of appreciation that will last only a few months and then the market place will pick up steam once again towards the end with the year.

What's your opinion?

Maybe there is a larger number of foreclosed household this year over last year?

This is in my opinion the million dollar question. I don't know if this sounds like a million dollar answer purchase here are my thoughts.

There are literally millions of house owners that are now upside down. Meaning the quantity they owe on there household is more than the present selling worth. Many of these properties are potential foreclosures. Nonetheless nearly all these owners are only upside down by less than 10%. Many of these owners have been impacted by the recession but still are able to make there loans payments. Things are tight but doable. So what is this owner thinking about? Well if they believe the worth of there household has bottomed out and also the worth is moving upwards once again than they will likely dig in and hold onto that property. Even so if they believe the household price is still moving down or it appears it will go down then I believe they quite a few will avoid the property and it'll become another foreclosure.

During this writing the media and the majority of research organizations are reporting increases in both income volume and profits prices. So what will happen future? Industry swings are largely determined by belief. We are what we think we're. It appears now that we feel the markets will continue to enhance and so it will be.

My prediction. The Los Angeles foreclosure industry will see a incredibly gradual slowing in the amount of foreclosures through the end of 2010 continuing via 2011.

One particular thing seems particular. Hundreds of thousands of homes will be foreclosed within the next two years. Each one of these homes represents an opportunity for somebody to begin a new future.

My predictions are base on my 25 years of experience within the Los Angeles real estate current market. Foreclosure industry information from TRW and Data-Quick also support these findings.

Is 2010 the year you sit and lick your wounds or is it the time you take bold action towards the long term? Play it safe with inaction or make your own future by your own action. In case you are curious about the possibilities or have any questions or comments please contact me.