As we reach the halfway point of 2010 it’s a wonderful time take a look at in which we’ve been and in which were going. In Los Angeles the revenue trends are already predominantly very positive. The volume of profits is up and in May perhaps 2010 the median product sales value was 22% higher than May perhaps 2009. But a look behind the numbers reveals some intriguing questions.

How a lot on the gain is attributable to the massive government property buyers tax incentive?

Answer. A lot.

But in Los Angeles how much difference does a $8,000 cash incentive influence a median priced property sale of $300,000? How significantly does it impact the selling price and how very much does it affect the volume of sales?

In 2010 I predict we will see a temporary drop-off within the volume of foreclosure product sales and a slowing of appreciation which will last for a few months and then the market place will pick up steam once again towards the end on the year.

What do you consider?

Will there be a larger quantity of foreclosed house this year over last year?

This really is in my opinion the million dollar question. I don’t know if that is a million dollar answer buy here are my thoughts.

You will discover literally millions of property owners which are now upside down. Meaning the amount they owe on there home is much more than the present selling worth. All of these properties are potential foreclosures. Nevertheless the majority of these owners are only upside down by less than 10%. Quite a few of these owners have been impacted by the recession but still have the capability to make there loans payments. Things are tight but doable. So what is this owner thinking about? Well if they feel the value of there household has bottomed out along with the value is moving upwards again than they will likely dig in and hold onto that property. Nevertheless if they feel the residence price tag is still moving down or it appears it’ll go down then I feel they many will walk away from the property and it’ll become another foreclosure.

At the time of this writing the media and also the majority of research organizations are reporting increases in both income volume and sales costs. So what will happen next? Current market swings are largely determined by belief. We are what we believe we are. It would appear now that we believe the markets will continue to improve and so it is.

My prediction. The Los Angeles foreclosure market will see a quite gradual slowing inside the number of foreclosures by means of the end of 2010 continuing by means of 2011.

One thing seems particular. Hundreds of thousands of houses will be foreclosed in the next two years. Each 1 of these homes represents an opportunity for someone to begin a new long term.

My predictions are base on my 25 years of experience from the Los Angeles real estate market. Foreclosure marketplace information from TRW and Data-Quick also support these findings.

Is 2010 the year you sit and lick your wounds or is it the time you take bold action towards the future? Play it safe with inaction or make your personal future by your own action. If you’re curious about bank foreclosures or have any questions or comments please contact me.

Seth Phillips

TrusteeAuctionInvesting.com