What is this "Shadow Inventory" and how will it affect the real estate market in Toms River, NJ?
We keep hearing the term, "shadow inventory" thrown around the real estate room these days. Exactly what is it and how will it affect me in Toms River, NJ?
Shadow Inventory refers to the "as of yet" unknown number of homes currently "in foreclosure" which have NOT been released to the market yet by the banks!
Slide courtesy of Keeping Current Matters!
So, what does that mean to me?
Well, if you NEED to SELL your home in Toms River, in 2011, there is currently a 13 month supply of homes on the market. That means; if no other listings were to come on the market from this day forward, it would take ONE YEAR and ONE MONTH to sell off the existing supply of homes in Toms River at the current sales pace.
Now, ADD the influence of the Shadow Inventory into the mix and 13 months turns into ? And there in lies the challenge; we DON'T KNOW how much actual Shadow Inventory is out there NOR do we know when it is actually coming on the market. What we do know is that this Shadow Inventory will ADD to the existing supply of homes and drive home prices down even further!
Our best guess-timate as to when this Shadow Inventory will come on the market is provided by 3 of the largest lending institutions themselves...the first half of 2011!
So, in a nut-shell; if you need to sell your home in Toms River, NJ, in 2011, your best bet to get the "highest possible price", is to list your home NOW, at a COMPELLING PRICE, before the Shadow Inventory is released some time in the first half of this year!
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