Thursday, October 25, 2012
Are the Asset Managers Out of their Minds?
Someone just posted in my Facebook Group that the banks are holding firm on their prices. This may be true, especially some areas that are seeing significant price increases. For example, one person I know did a rehab in Hayward, CA (near the Bay Area) and priced it at $260k. Within days the settled on an offer of $340k. WOW. That's some accelerated pricing, and a nice surprise for him.
In addition, hedge funds are in every metropolitan area scooping up foreclosures at the courthouse steps and prices the locals would never touch. What does that mean? To me, that means we are in a position to see some significant appreciation for the next few years.
Historically the last quarter of the year is the time the asset managers want to get toxic assets off their books. In fact, I've gotten some of my best deals this time of the year. However, given these events I wonder if this is true. Are we seeing the banks holding firm on their pricing?