We continue to see a ton of short sales hit the market every single day in the southland real estate market.
The reason for this is twofold:
Real estate prices aren’t necessarily “falling,” but they’re nowhere near the levels that people paid a good five or so years ago, and for that reason the fatigue of remaining underwater is forcing many people to change their overall approaches and list their homes.
The job market is not anywhere near as stable as we’d hope for in the great state of California. We’d hoped to see a strong recovery in unemployment data for the state so that we could catch up to the rest of the country, but hiring remains slow, even in a state filled with as many corporations as ours.
Moving forward, we assume that the short sale will continue to be a legitimate option for many homeowners who are either suffering from underwater fatigue or are simply lacking the employment necessary to keep their current lifestyles going.
The rest of 2012 and the coming 2013 both promise to be curious times for the real estate marketplace. We hope to see a hardening of the price floor that seems to be forming, and then hopefully a bounce in prices when the job market awakens.