Bank Owned Homes in Redondo Beach and Foreclosure Auction Real Estate Trends

With so few Bank Owned REO foreclosures listed for sale in the MLS, many buyers have been wondering where the "shadow inventory" of bank owned foreclosures is. So if you want the foreclosure list click here.

Currently, there are 38 homes headed for Trustee Sale Auction on the courthouse steps as foreclosures. If all those hit the MLS at the same time, that would be about a month of Redondo Beach housing inventory and yes, that would move the market and probably not up. Not a good trend.

On the other side of the real estate ledger foreclosure ledger, there are 8 REO homes in North Redondo Beach (90278) the banks own that they have not yet released for sale or listed in the multiple listing service. So, while eight REOs released at once won't kill the market, certainly not a huge overhang. That's good news whether you want to buy or sell a home.

Year to date there have been 25 closed REO foreclosure transactions in North Redondo Beach. That's actually ahead of last years pace of foreclosure sales which saw 14 REOs trade hands in the same time period. It's curious that the buyer perception is that there have been less foreclosure transactions. This is probably a function of there being significantly greater buyers in the market this year than last and inventory over all being down. An interesting trend. or maybe perception is reality when it comes to foreclosures: there are no bank owned REO foreclosures listed for sale in the MLS as of the time of this post and only one foreclosure sale in escrow. As I said, an interesting trend that, if anything, is forcing value minded buyers to seek out short sales as alternatives to foreclosure sales.