Despite massive amounts of taxpayer bailout money being spent on modifying delinquent loans, the inventory of lender foreclosed homes, called REOs, has been increasing. Currently there are 166 REOs listings in El Dorado County. El Dorado Hills has 25 REOs listed in the MLS, Cameron Park/Shingle Springs 29, Placerville/Diamond Springs/El Dorado 29 and there are 33 REO listed above Camino. The other 50 REO listings are scattered around the county from Fairplay to Georgetown.
REO sales make up one of every four county home sales. That’s not surprising when comparing prices of REO and non-REO properties. The average selling price of a county REO home is $253,000 while non-REOs sales average $397,000. REO sales typically take 49 days to attract an offer which is usually at or slightly above the listed price. The non-REOs home will typically take 79 days to and attract offers at 95 percent of the current listed price.
There is some evidence the number of new loan defaults is decreasing. Notices of Default, the first step in the foreclosure process, edged up slightly from May to June but according to ForeclosureRadar, decreased 45 percent from June of 2009. That’s a good signal the worst is probably over. If so, it’s about time. The excessive number of foreclosures has decimated property values and erodes confidence in the housing market.
Information provided by Ken Calhoon, Broker, Placerville, CA.