Thursday, March 31, 2011

If I wasn't so fearless.................

this would scare the hell out of me.   The map below is purported
to show the how many months supply of shadow inventory exists.
It comes to us from the National Association of Realtors here,
via the KCM blog- here.

"Shadow inventory" is one of those new industry buzz phrases. 
I suspect it is comprised of the number of single family residences
already foreclosed on and owned by lenders - but not yet
actively on the market, plus the number of single family homes in
the foreclosure pipeline, and plus those single family homes
expected to be foreclosed on in the immediate future.   If I am
reading this correctly, the map believes that, in Ohio, there is a
16 month supply of shadow inventory.

With this shadow inventory hanging over the market, the next
year will be tough on sellers.  Prices most likely will drop some
more.  We previously predicted another 5% to go, and we are
sticking with that number.

If you are on the buying side of the equation, this is not bad
news at all.  There are some really good buys out there, and
rates are highly affordable.

As we have stated before, all real estate markets are local.
States are not local.  Counties are sort of, but not quite,  local. 
School districts are local.  Neighborhoods are local.  Your
results may vary.

The good news is that, as the economy continues its
recovery, the pace of absorption should steadily, and then
dramatically, increase.

Number of Months' Supply of Shadow Inventory

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