I guess I’m a little bit more surprised by this real estate market then some people may be, because I was heavily involved in the mortgage loan modification business, and I know how many houses have been foreclosed on that are still retained by the banks.
so the fact that there’s no inventory is absolutely crazy, but also makes perfect sense. If the banks hang onto the inventory, they can drive up prices, and then I’ll get a better return when they put their houses on the market slowly, to take advantage of the rising prices.
The deals going right now, are the REO’s. those are the properties that were foreclosed on by the banks and then are being listed by real estate agents.