Fremont Real Estate Blog

I've had two clients ask me about the Tsunami of impending foreclosures today. So let's look at the numbers as the stand today. If you compare REOs (currently for sale foreclosed on), auctions, the ratio is about 2:1 or a 100% increase. And Pre-foreclosures are running twice the auction rate. So the supply will increase. However now compare supply to the current burn rate. If you think of pending sales as the rate at which supply is being eaten on a monthly basis, demand is greater than future supply. The only market that may have an oversupply is Newark. These numbers are not perfect since Foreclosure Radar doesn’t capture every pre-foreclosure. Also Pending Sales includes Short Sales which can last for more than 30 days, so consumption is exaggerated, and I'm not factoring in the supply of regular sales in the market. If you've been shopping however, you know there are more buyers than properties that suit their needs. I'm not concerned about the "much talked

The graph shows default and foreclosures are up from April 2008, however they are lower than last month's total. March 2009's numbers also reflected the lifting of the foreclosure moratorium by many lenders, but then new foreclosures rules were implemented to further delay foreclosures. I would expect additional REO's to come online in the coming months.