Re: expectation of appreciation?

In Northern CA I have noticed the volume decreasing throughout the whole market. At the retail level the supply is almost non existent. There are very few properties for those who wish to purchase them.

Likewise at the TS there are more bidders every day competing for a dwindling supply of assets. The buy and hold crowd will always bid up to full retail. The rehabbers are all competing for what is left and they bid at about 90% of market value.

I have a few different theories but I think it is a combination of a political power play on this election year and servicers getting better. This might be the first summer in a while where prices are squeezed up and the current administration can claim to have fixed the housing crisis. The lenders are getting better, more success full SS and they are secretly taking a ton of deed in lieu.

So for the short term, I guess that are banking on forced appreciation but we all remember the appraisal mess we had in 09.........I cant entrust my bottom line to the appraisal industry.