It seems most of the sales in Sarasota County and Charlotte County are from short sales at this time. Charlotte County has listings that number in the thousands, as does Sarasota County.
Banks are doing well with their inventory. They are holding it and letting it out slowly. As they control most of the inventory, they also can, and have, a significant effect on market price. By letting the property on the market slowly, they they can effect market equilibrium.
Market equilibrium is when supply equals demand. When supply is greater than demand, the price drops bringing in more buyers until the buyers buy up the supply. With a lot of homes for sale, prices drop. The banks do not want that as they want the most for the homes they now own from foreclosure. So, they don't put them on the market as they get them. They wait.
They do have other issues also. Stockholders who want a return on their money.
Saturday, September 19, 2009
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