Business Journal: Bank Owned Homes Flood Market

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(Sacramento, CA)
Wednesday, November 19, 2008
Sacramento-area home sales dipped about 8 percent in October, compared to a month earlier — and many of the homes that sold were owned by banks and mortgage companies. In fact, many homeowners are so frustrated by the flood of bank-owned homes that they are taking their properties off the market, unless they absolutely have to sell their home, according to Trendgraphix Inc., a division of Lyon Real Estate. Many banks are aggressively cutting the prices of homes and are finding many buyers looking for bargain-priced properties, and that’s greatly lowering prices and slowing sales of non-bank-owned homes. Despite the declining number of sales last month, existing home sales were more than double the pace of October 2007. Sacramento County accounted for about three of every four of the 2,500 homes that sold in the four-county region in October. The county communities of Elk Grove, Natomas and south Sacramento have been some of the hardest-hit by foreclosures in the region.