We’re definitely in a temporary price bubble in CA, no question about it. The lower priced homes already bottomed out in Mar/Apr 2009, and they can’t go any lower, but the rest of the higher priced properties will have to come down in price. We’ll see what happens after March.

Not sure there’s a huge shadow inventory – most Asset Managers don’t have much to put on the market, and have nothing to sell in bulk. Banks just aren’t foreclosing anymore. People stay in their homes for up to two years without being foreclosed on, but even those who get foreclosed on are not being evcited.

Wachovia said to accept any short sale offers that come in at 70% of the BPO or better, so they don’t even want to deal with Trustee Sales.

If you want to see Real Estate professionals get into name-calling over the subject of foreclosure moratoriums and evictions, go to: http://tinyurl.com/yj6nwlr

Angella Raisian @ http://AngellaRaisian.com