The good and bad of bank sales and your home
The increase of sales can be attributed in no small part to the number of REO or bank owned homes that are selling across Florida this year. In Osceola County, 6 out of 10 sales recorded in the MLS during March 2009 involved bank owned listings. The good is that these sales stir activity, increase revenue and offer a glimmer of hope towards the market taking a positive step in the right direction. The bad includes the fact that each sale reduces the value of homes in the general area as these bank homes are being moved at distressed prices.
A very real concern is also discussed in this piece written for RISMEDIA. There are those who fear the banks are holding onto a huge inventory of homes in order to prevent market values from tanking even faster and deeper that they already have.