As a Lake Nacimiento Real Estate agent, my goal is to bring you the latest in real estate news; whether good or bad. While the housing market is on the road to recovery; there is a new term that you might begin to see more frequently: shadow inventory.
Shadow inventory are those homes that are bank owned, but have not yet been put on the market. Banks choose to not list their entire shadow inventory for a variety of reasons. First and foremost, they realize that by listing these homes, it can inundate the market with distressed properties, which can be detrimental for homes that are not distressed. An areas’ market value can be greatly affected by an abundance of foreclosures on the market. It could also be that they don’t have the staff to handle that many foreclosures at once with the amount of paperwork that is involved. Another reason is that they don’t want to count those losses all in one quarter, but would rather spread them out over the course of a year.
The National Association of Realtors recently put out an article giving statistics for the states that have the most shadow inventory. Florida came in #1 with over 441,000 homes that are waiting to go on the market. The #2 spot is held by California, and although significantly less that Florida, our state still has nearly 228,000 properties in our shadow inventory. It’s estimated by NAR that it would take California 11 months to clear our entire shadow inventory, which seems minimal compared to New York’s 34 month prediction. NAR notes that the timeline for delinquent mortgage loans have been significantly extended. It could take up to 638 days for a distressed property in Florida to move through the foreclosure process! Since 2008, the foreclosure process for both Florida and California has jumped 156% and 157% respectively.
The amount of foreclosure sales across the nation increased to 39% for all of February’s transactions. NAR pointed out that the average sale price of a home has decreased 5.2% since last year and is now at $156,000. Reports from Capital Economics show that there are currently 5.3 million homes in limbo between foreclosure and the sales market. The chart below shows each state’s share of distressed properties.
If your home is currently underwater and have questions about your options to avoid foreclosure; please let me know! As a Certified Distressed Property Expert, I can answer your questions and help find the best option for you and your home. Please feel free to contact me anytime!
Grace Borzini
Your Local Lake Nacimiento Real Estate Expert
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Oak Shores Realty specializes in Oak Shores at Lake Nacimiento properties. Please contact us today to get more information on Lake Nacimiento lake homes. Oak Shores Realty can also provide you an insiders “Lake Nacimiento Buying Guide” with great information including maps and market information.
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