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Banks hold back repos

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High Five
Thursday, September 16, 2010

Banks are moderating the rate they place foreclosed houses on the market to avoid over-supply.

The trend is visible in the Eugene-Springfield area, as well as on a national level, says Eugene real estate broker Bill de Groot.

After years of accelerating foreclosures, banks own 1,488 houses in Eugene, Springfield and nearby small towns, he said. He made the count using foreclosures supplied by RealtyTrac.

However, only 149 of those bank-owned houses were listed with the regional multiple listing service for sale in August, meaning 90 percent of the bank-owned houses make up a shadow inventory that exists alongside the local real estate market, he said.

“If they would dump all of these foreclosures on the market, that would be disastrous,” de Groot said. “It would create a tremendous drop in prices. That’s something the banks don’t want to have happen because they’d lose even more.”

Read more at The Register-Guard.

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