Jim the Realtor posted recently that over 700 homes in San Diego sold at trustee’s sale auction during the past 12 weeks to a party other than the beneficiary (lender).
The “flipper ratio” (ratio of homes sold to 3rd parties / total number of homes sold at auction) was over 20%. This is historically very high.
Read the story and review the data in Jim’s blog: 700+ Flippers
Listen below for a brief background on the trustee sale process.
Why are all those homes sold to investors instead of going back to the bank? I think this indicates that the pricing is finally low enough for investors (who are paying all cash) to buy a house and either flip it to a home buyer for a quick gain, or turn it into rental property (some lower-priced homes might even cash flow positively) to hold for a longer-term gain.
What do you think? Please add your comment and let me know.
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