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The Shadow Knows

By
Real Estate Agent with The Hudson Company Winnetka and North Shore

shadow The Shadow Knows...                                       

I’m getting older, but not old enough to remember radio mysteries.  However, as a trivia fan, I am familiar with some of the tag lines from those shows.  Probably none is more noted than the refrain of a deep, creepy voice stating:

“Who knows what evil lurks in the hearts of man?

The SHADOW  knows”....followed by an     ominous laugh.                                                        

                                                                                        (photo courtesy of Raindog's photostream via Flickr)

In today’s real estate market, the most mysterious and elusive element is the
Shadow Inventory”.

According to the financial website “Investopedia” the shadow inventory is:

“A term that refers to real estate properties that are either in foreclosure and have not yet been sold or homes that owners are delaying putting on the market until prices improve.”

The shadow inventory is the elephant in the room in real estate circles.  According to any number of mysterious sources, it is about to explode and turn real estate markets on their ear.  

Interestingly, inventories of properties for sale in all of the North Shore towns, as well as in most parts of the country, are at their lowest levels in several years.  

Yes, there are many potential sellers who put off selling their homes for the past several years in hopes of waiting out the downturn.  Unfortunately, these people have been financially punished for waiting, but this does not necessarily mean that they will come out in droves to sell their homes this year.  But it might.  

There is no question that the banks own many properties everywhere.  There have been many foreclosures on the North Shore, but compared to most parts of the country, the number of “bank owned sales” (officially called REO’S or Real Estate Owned) has been minimal. Have they decided to flood the markets with properties this spring?  Maybe, but wouldn’t that be counterproductive if they were trying to maximize their proceeds?  

The bottom line is that it is impossible to know what impact, if any will be felt this spring due to the “shadow inventory”.  

For sellers, because inventories are currently low, now is a great time to get your home on the market.  

For buyers, the combination of reduced prices and incredibly low mortgage rates provides an intriguing opportunity.  

What will happen down the road, only “The Shadow Knows”.





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Susan and Howard Meyers

The Hudson Company

851 Spruce Street

Winnetka, Illinois  60093

847.778.1394

howard@susanandhoward.com

 

Comments (2)

Erv Fleishman
Realty Associates - Boca Raton, FL
Luxury Prop Specialist Realty Associates

Ignore the shadows and deal with the sunlight. 

Jan 22, 2012 03:14 PM
Howard and Susan Meyers
The Hudson Company Winnetka and North Shore - Winnetka, IL

Erv...sounds like a plan.

Jan 22, 2012 03:15 PM