Washington State has roughly 21-30 months of shadow inventory coming from bank owned properties.

By Reba Haas

Real Estate Agent with Team Reba of RE/MAX Metro Eastside www.TeamReba.com

April 21, 2011 09:46 AM

For those of you who thought we were close to being out of the woods when it comes to distressed properties, I have bad news for you. In today's Advanced CDPE call (a designation I highly recommend) a map of the US was shown that listed out shadow inventory level expectations for each state. Mine (WA) was smack in the middle of the pack.

Granted, with real estate being hyper-local it could mean that those inventories will be outside of my area, but I doubt it since I work in the King, Snohomish and Pierce County areas with my team of 5 agents. At one time, Tacoma had the highest levels of foreclosure here but they've now mellowed out some and other areas of King County have picked up instead.

We'll see what it does to prices over the next few years - some areas are still seeing declines, but we do see pockets of leveling to actual growth in close in areas such as North Seattle and Bellevue.

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Mitch Gover

BidOnRealty.com - Orlando, FL

Hello Reba. I think you're right. The banks have no incentive to dump a lot of inventory all at once since the suspension of mark to market accounting. Many look at delinquent borrowers as "caretakers" of their inventory i.e. - somebody living there and (somewhat) maintaining the property is better than sitting vacant and unsold in a crummy market. They will slowly muddle through the inventory over a period of several years. REOs are gonna be here for awhile, IMO. Thanks for the post.

Apr 21, 2011 09:52 AM

Washington State has roughly 21-30 months of shadow inventory coming from bank owned properties.

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Reba Haas

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