Many folks have said they are going to wait to purchase a home in Murrieta and the surrounding cities.Their reasoning is the banks are holding thousands of homes from the market only releasing a few at a time to drive prices up as they will receive multiple offers on them. This theory of a 'Shadow Inventory' has created a mind set of waiting as a wave of foreclosures will suddenly appear and the glut of homes will drive prices down according to many hopeful buyers and some Realtors as well.
The biggest problem for everyone is who do you believe as there are conflicting views and waiting may be a gamble and only time will reveal who was right. The one thing I know for sure when it comes to determining where the bottom of a Real Estate down cycle was at is when the prices start rising and we can then only look over our shoulder at the previous price. That Was the bottom.
The banks have denied this shadow inventory but hey who wants to believe a Bank, right? Well we now have a new report from ForeclosureRadar, a data tracking firm, that is standing with the banks as they are debunking the Shadow inventory theory and they prove it with their statistics. Feel free to interpret them any way you want.
According to the report the inventory of foreclosed homes in California peaked in September 2008 at 155,269. Since then the banks have been selling them as fast as possible and they now have 41% fewer than a year ago.
In Riverside County which includes Murrieta and the surrounding cities the numbers are in line with the state. The bank inventory fell from 2959 to 1747 for the same period a 40% decrease.
San Diego County inventory fell from 1562 to 914 a 41% decrease. According to the report these figures show there is no Shadow Inventory of homes being withheld from the market and that there will not be a glut of foreclosed homes in the future.
What the future holds for the Real Estate Market is anyone's guess but waiting for the 'bottom' to hit is only a gamble at best.
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