Banks Capitalize on Opportunity – Should You Follow?

TAMPA, Fla. - June 14, 2013 - PRLog -- New numbers revealed this week show banks are not so eager to negotiate and are fast tracking foreclosure to capitalize on this new trend. According to RealtyTrac which follows trends in the distressed market, REO activity by banks is up 11% in May from April.  In fact, according to CNBC, REO activity increased substantially in 33 states including Florida.

A closer look at the four county areas in the Greater Tampa region and the picture becomes crystal clear.  In May 2009, monthly total sales were just over 1500 units.  Fast forward to April of this year and 2200 total units were sold – that’s a 43% spike.  Home prices increased by 10% during that same time span. On top of that, that there has been a 31% decrease in the average time a home sits on the market and 74% decrease in the total months of inventory available.

In 2009, 11.2 months of inventory was available compared to 2.9 months in April of this year. “Sales are very strong and inventory is very low. Many of the homes that hit the market end up in a multiple-offer situation,” says Brian McBride, Broker and Owner of McBride, Kelly & Associates Realty in Hyde Park Tampa.  McBride points out that hedge funds are providing the tailwind to this dual trend of rising prices and low inventory here locally. “Hedge fund buying is still very strong in the area. Banks have increased their level of unloading their bad assets through the auction process; hedge funds have flocked to the courthouse auction block. They have aggressively made cash offers to sellers immediately when the home gets on the market.”

This brings into focus what is called Warren Buffet logic: “Buy when everyone else is selling, and sell when everyone else is buying.”  McBride states, “The growing number of buyers and low inventory has put many sellers with equity in a great position.”

Bay to Bay Lending is based in Tampa, Florida. The company has a team of mortgage brokers ready and willing to assist you with any of your loan needs. To reach Senior Loan Originator Tony Marra, contact him directly at (813) 842-7999 or reach out to him via email: tony@baytobaylending.com. Visit us on the web at www.baytobaylending.com and use our free mortgage loan calculators.