22 October 2008

Real Estate may be about to go up

An acquaintance told me that her friend can't buy a foreclosed property in Antioch, CA for cash. The friend made an offer that met the bank's price, but now the bank doesn't seem to be able to get around to processing the transaction. My acquaintance thinks the bank may have let its experienced people go and hired younger, cheaper people to replace them. The young folks don't know what they're doing, so the bank slows down and the paperwork piles up.

I'm not so sure. It's more likely that the bank thinks the local real estate market is about to go up in the next couple of months, and is delaying the sales of foreclosed properties in hope of getting higher prices. It's playing dirty against the friend with the cash, but for the rest of us, it's a hopeful sign.

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