The number of Stockton REOs has decreased as banks and investors sell REOs in bulk and foreclosures are purchased at a discount on the court house steps. Banks and investors are also starting to rent the homes they own. We expect this will provide a downward pressure on rental rates. Landlords should lock tenants into long-term leases now!
The competition to purchase Stockton homes for sale has also decreased. We attribute this to the frenzy of activity created in anticipation of the end of the first time home buyer tax credit, similar to the increase in auto purchases stimulated by the cash for clunkers program. Interest rates remain artificially low. Now is a great time to buy.
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