Take a look at June on this chart. There were more than 2 times as many cancellations of Trustee Sales as there were properties that reverted back to the bank. In September, the number was virtually the same.
I seem to remember hearing one of my most respected mentors Bruce Norris at The Norris Group recently say something to this effect: "When properties begin to go back to the bank at a higher rate and the number of cancellations dramatically decrease I'm going to dump every thing I own." I don't want to mis-quote Mr. Norris but I think this is what he was saying. I'm not sure about you, but to me, the chart is screaming "SELL, SELL, SELL!!!!".
If you are a flipper hoping for retail profit (as I am), this is important stuff to pay attention to. If you are a buy-hold person (as I also am) you may want to plan to get your funds together because prices could be lower soon.
This is nothing that we haven't heard before in the past several months, but the chart seems to be confirming the inevitable. I'm certainly no economist nor an expert on market trends. I merely try to pay attention to what is happening and follow the advice of people I respect. Who knows what will happen. I'm still buying, but with this chart in mind and appropriate exit strategies.
No comments:
Post a Comment