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"Inventory is Low" - "Trust Me, I'm Lying"

By
Real Estate Agent with RE/MAX Distinctive / LIC in VA

"Trust Me, I'm Lying" is not just the title of a new book about media manipulation, it's also a tactic used by agents and lenders to manipulate the housing market and get existing inventory under contract. I've lost track of the amount of times Bank of America has said they plan on flooding the market with foreclosures. I know some local lenders here that have several properties that they are holding to put on market later because appraisals came back low. Every builder ( 25+ of them) that I know has 1-20 ready to build lots that they've been sitting on for the last 2-3 years  because they couldn't compete with all of the foreclosures and short sales on the market over the last few years. Some of those builders are gearing up to start new construction projects . When that happens, you can predict all of the people that wanted to sell when the market improved will start making plans to put their houses on the market. Plus, I can sit here and think of at least 10 houses that are abandoned, that the owners finally walked away from after they saved up enough money to rent something because they haven't paid their mortgages for the last 6+ months. These homes will be added to inventory as soon as banks get around to foreclosing on them. There is now, and will be plenty of inventory, so don't be fooled by claims on low inventory. If you can't find a home you want, consider buying a lot and building the home you want. Most builders can have a house ready for occupancy in approximately 3 months, sometimes less. I personally am in the process of creating 5 new building lots on one project, and 3 more on another project in Leesburg and Lovettsville area. Inventory is growing, buyers  have choices, If you can't find it,build it! It really doesn't take long to create inventory!

 

Jeff Pearl / REALTOR

RE/MAX Distinctive

703-727-4876

jeffpearlhomes.com

jeffpearlhomes@gmail.com

Equal Housing Opportunity Provider

Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS

Jeff, in my area, Jacksonville, FL, inventory is currently low, and without a crystal ball, in our state, the judicial foreclosure process means inventory will not go up overnight.

May 15, 2012 09:04 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Low inventory can be seen here....and because real etate IS local...it depends upon how you define "here" !

May 15, 2012 09:13 PM
Raymond E. Camp
Ontario, NY

Everyone has a different area that reflects what is happening and right now this area market is low on inventory!

May 15, 2012 09:31 PM
JOSH EVANS *JoshEvansHomes 516-655-5000
Village Properties of Mineola, LLC - Mineola, NY
Great blog and great job. Keep up the good work. Good luck to you this year. Thanks
May 15, 2012 09:37 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Our inventory #s are higher than last year at this time; however, the quality of the offerings is considerably less.

May 15, 2012 09:48 PM
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

#1- Hi Carol, Yes, the foreclosure process is stalling the increase in inventory. My aunt ha sa house in FL, and wants to sell it and move back to VA. She had it on market for over 1 year and no one even looked at it. I think many owners just know that there is no sense in putting their houses on the market until the # of short sales and forclosures goes down to normal levels.

#2- Sally and David, For me Here is Virginia. I'm curious if you have many building lots on the market in your area? Are builders building? Are there many FSBOs? I think some inventory is out there, it's just being hidden or held back off the market until things improve. Not all inventory is in the MLS was my point.

#3- Hi Raymond- See reply to #2. Good luck!

#4- Hi Josh, Thanks. Same to you!

#5- Hi Wallace- I see the same thing here. Builders are cutting back on size and quality, and settling for less profit just to keep some people working.

May 16, 2012 09:00 PM