Out of the Shadows
2011 is beginning with much more positive news with regards to the housing industry than we have had in several years.
The pending sales numbers (houses going into contract) have been climbing for several months. Last month’s Existing Homes Sales Report from the National Association of Realtors showed an increase of over 12%.
With demand increasing...does that mean prices will begin to appreciate? .... unfortunately probably not
Buyers have started to purchase homes again, but an increased inventory of distressed properties is also emerging from the shadows.
These properties, out of the shadows will have a negative impact on prices.
Home prices are determined by the relationship of demand to the supply of inventory available.
Meaning the "shadow inventory" of homes that will come to market at discounted prices when they are sold as short sales or foreclosures, which is several million homes.
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