-
Quick Tour
Connect. Share. Learn.Welcome to ActiveRain, the #1 social community for real estate professionals.- Explore the world's largest storehouse of real estate knowledge
- Access free training on ActiveRain University
- Share the experience of life in the real estate industry
- Grow your business through real estate blogging
- Blogs
-
Resources
Product Reviews Curious as to what others in your profession think about a certain product or tool? AR's community takes the time to leave honest and transparent reviews of their experiences so you can be a bit wiser about your purchase.
- Broken down by categories and subcategories for easy finds
- Get an unfiltered look at what real users are saying
- Leave a review yourself for others to benefit from
- Add new products as you use them and gain points for doing so
|
;)
;)
;)
Find NV real estate agents and Las Vegas real estate on ActiveRain.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
© 2013 ActiveRain Corp. All Rights Reserved
76 Comments on What is Shadow Inventory?
Renee,
The people who have come up with this Shadow Inventory theory must be in charge of the short sales too! Maybe one day they will all come on over to the real world with the rest of us!
Shadow inventory is a big problem and will be for several years in our market also. the Banks only want to release a little at a time so they don't implode n already bad situation. In spent 33 years on that side and I undestand what they are dealing with. It will be with us in certain markets fo a long time. So dig in and work what you can and survive for better times.
Renee - Me and My Shadow are unafraid of the doom that is "deemed" upon us. I am more worried about Polar Bears that Shadow Markets. Perhaps I'll chill out and get ready for the spring market. The spread from Vegas is that we will have a good year. I'm betting on it
Renee:
These properties know in the industry as "shadow inventory" may be a proverbial time bomb for the real estate market. For example, what would happen if all of a sudden these inventories flooded the marketplace. The disaster would result in further depreciation sparked by the existing glut of foreclosures in the marketplace. So what is the real logic for the banks holding on to all these distressed properties?
First, and probably the most obvious is that the banks are slow to move this inventory because they would have to reflect the losses on their books. Having to reflect these loses on their balance sheets would put further stress on the banks.
Secondarily, banks may be holding inventory to allow for a slower free-fall of prices. Market recovery may also bring about increasing assets! Still another variable (as you mentioned) may be that it just takes a good deal of time and money to get a foreclosure cleaned up and ready to be marketed.
Most of the homes I watch have come on the market, but I do believe that they have inventory that they may have to hold for various reasons.
I don't claim to have an secret knowledge but I agree that it is unlikely all this "shadow" inventory will suddenly come the market this year.
Will deal with it if and when it should ever happen.
I ask a friend of mine, who happened to be a reporter, why papers and TV only report the "bad" stuff? His answer was, "Blood Sells!!" Like it or not, he was right. Just look to your left or right the next time you are in the checkout line at the grocery. The rags don't tell the AHHHH stories.....they tell the OHHHHH stories!
I like how you think......good job!
I know many buyers who are hoping to have the "shadow inventory" hit the market and bring down prices. It hasn't happened yet.
I wonder what will happen first. Earth being hit by a comet or all the homes coming out on the same day. It's the boogeyman in the closet. I work with investors so I deal with this a lot. Two years ago people were worried about this so they didn't buy. I could of sold them houses for 80K that rent for $1,200 a month. Today those homes are now going for 120K.
LOL. Maybe they'll drop to 80K when the inventory hits. No freaking way - morons.
Shack Diva,
You are right! And, investors are buying bulk from the banks and doling them out at their appointed time.
Renee - Love this post! You are very right about the way statistics are skewed everywhere, and exaggeration on facts is pretty rampant....
Interesting. I hope your right about the big dump. If you're not there could be another decline one day when the industry least expects it and values could drop accordingly. I don't see a dramatic decline in value but even 10 percent could put a dent in our recovery. Good for the turn and burn short sale flippers bad for buy and hold homeowners desiring to purchase a home to live in.
hmmm, very interesting Renee
I had always thought shadow inventory were homes that were behind on their payments but not yet in foreclosure.
Renee, reading this post and the many comments is a wonderful education for all of us.
Good information. I am going to Reblog this because we are very down on the banks in NJ. We can't seem to get any action from them no matter what favorability there is.
Katie the Real Estate Lady
Kate Reilly Lund
http:www/kreillylund.remax-nj.com
Good information. I am going to Reblog this because we are very down on the banks in NJ. We can't seem to get any action from them no matter what favorability there is.
Katie the Real Estate Lady
Kate Reilly Lund
http:www/kreillylund.remax-nj.com
I don't believe that banks are holding inventory, but I do believe in hundreds of thousands of homeowners are currently in 90 day default and that is scary!!
BANKS hold inventory because they still get their guaranteed payoff at the end and YES they are working it!
Login or register to leave a comment