California Congressional Representatives Introduced H.R.
5823 - the Saving Taxpayers from Unnecessary GSE Bulk Sale Programs
Act of 2012. The bill would halt the FHFA's REO program to sell
bulk sales of Fannie Mae owned foreclosed properties in California
to institutional investors.
The California Association of Realtors has expressed their support for HR 5823 and while REO inventory is low and demand is high there might not be a need for bulk sales.
Orange County Realtors and other California Realtors across the State have been reporting low REO inventory. As a result, many buyers are competing with investors in multiple offers for distressed properties that are frequently selling over the asking price.
The negative impact of bulk REO sales to institutional investors in California at the present time would slow the states economic recovery. The demand is high for California's REO and closing times are as short as 60 days or less. Many Real Estate professionals agree that there is no need for the bulk sales.
"The strong results in pending sales - double-digit year-over-year gains in the last nine out of 10 months - suggest solid housing market performance for the state in the upcoming months." ~ LeFrancis Arnold, C.A.R. President
May 2012 Non-Distressed Sales Rise, While May Distressed Sales Decrease
Recent reports by the California Association of Realtors state that non-distressed homes sales in California increased to 59.3% in May 2012. This is up from 55.8% in April 2012 and 51% in May 2011
Furthermore, Short Sales and REO's decreased in California, falling to 40.7% in May 2012, down from April 2012 with distressed homes sales of 44.2% and decreased from 49% in May 2011.
The percentage of short sales declined in May 2012 to 19.4%, which was down from 20.6 in April and 20.3% from May 2011. Out of all distressed sales, REO sales showed the highest decline in May 2012 to 21%, which was down from 23.2% in April 2012 and 28.4% in May 2011.
California is recovering and it's doing so on it's own; REO inventory supply went from 2 months in April 2012 to 1.5 months in May 2012
H.R. 5823 is coming at the right time. The strongest sign of a California housing recovery is that May 2012 marks the 13th straight month of pending homes sales being higher than the previous year. Housing being affordable with interest rates a historic lows is also helping recovery.. if there were only more jobs!
David Milo is a Orange County Certified Distressed Property Expert in short sale and foreclosure alternatives. You are welcome to read his review on choosing a short sale agent, or watch the Short Sale vs. Foreclosure video.