I am beginning to see capitulation amongst the banks regarding REOs. I'm seeing steady, but persistent price declines. I made an offer on one POS property that is only worth land value. The bank declined and the broker claims they will only accept a full value offer. This
firm attitude is impotent as they've managed two 10% price drops in the past 3 weeks. They seem to believe they can win in a game of chicken?
Also, I'm seeing foreclosure pricing dip significantly. Adjusting for very modest inflation, some fixer-uppers are cheaper today than 10 years ago.
For the record, I am a vulture. I pick up scraps. I am proud of what I do. When long-term investors begin to jump on, you'll know real estate pricing is beginning to reflect fundamental values. Fundamental valuations support a healthy balance of cash flow, equity paydown, tax benefits, and price appreciation. Of course, RE investing is passé, now. It has morphed into horrible subject matter for TV. That's perfect, IMO.
jurgen