Our Greatest Los Angeles Foreclosure Market Predictions 2010

As we reach the halfway point of 2010 it’s a wonderful time take a look at exactly where we’ve been and where were going. In Los Angeles the profits trends are already predominantly very positive. The volume of income is up and in May possibly 2010 the median income selling price was 22% higher than Might 2009. But a appear behind the numbers reveals some intriguing questions.

How very much on the gain is attributable to the massive government household buyers tax incentive?

Answer. A lot.

But in Los Angeles how much difference does a $8,000 cash incentive influence a median priced house sale of $300,000? How much does it impact the selling price and how a lot does it affect the volume of product sales?

In 2010 I predict we will see a temporary drop-off inside volume of foreclosure profits and a slowing of appreciation which will last for a few months and then the market will pick up steam once more towards the end of the year.

What do you think?

Will there be a larger quantity of foreclosed house this year over last year?

This is in my opinion the million dollar question. I don’t know if this is a million dollar answer buy here are my thoughts.

You can find literally millions of home owners that are now upside down. Meaning the amount they owe on there house is far more than the present promoting value. All of these properties are potential foreclosures. However the majority of these owners are only upside down by less than 10%. Quite a few of these owners happen to be impacted by the recession but still have the capability to make there loans payments. Things are tight but doable. So what is this owner thinking about? Well if they think the worth of there house has bottomed out and the value is moving upwards again than they will likely dig in and hold onto that property. However if they believe the property price is still moving down or it appears it will go down then I feel they many will walk away from the property and it will become one more foreclosure.

At the time of this writing the media along with the majority of research organizations are reporting increases in both product sales volume and product sales prices. So what will happen next? Market swings are largely determined by belief. We are what we think we’re. It would appear now that we think the markets will continue to enhance and so it is.

My prediction. The Los Angeles foreclosure market will see a quite gradual slowing in the number of foreclosures by means of the end of 2010 continuing via 2011.

One thing seems specific. Hundreds of thousands of homes will be foreclosed inside next two years. Each 1 of these homes represents an opportunity for someone to begin a new future.

My predictions are base on my 25 years of experience in the Los Angeles real estate market. Foreclosure marketplace data 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 personal long term by your personal action. If you’re curious about bank foreclosures or have any questions or comments please contact me.

Seth Phillips

TrusteeAuctionInvesting.com