(I'm asking almost like that little-ol'-lady in that hamburger commercial "where's the beef?"
How real is the shadow inventory? I was reading a blog about this, and the writer said: "banks all across the nation are keeping foreclosed properties off the market. They're doing it on purpose, to fudge the statistics and make it seem like everything's alright."
The San Francisco Chronicle:
Lenders nationwide are sitting on hundreds of thousands of foreclosed homes that they have not resold or listed for sale, according to numerous data sources. And foreclosures, which banks unload at fire-sale prices, are a major factor driving home values down. "We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market," said Rick Sharga, vice president of RealtyTrac, which compiles nationwide statistics on foreclosures. "California probably represents 80,000 of those homes. It could be disastrous if the banks suddenly flooded the market with those distressed properties. You'd have further depreciation and carnage."
How accurate are all these reports? Do you agree with these reports? What say you?
Now, I've been noticing that the "foreclosures" statistics don't reflect the MLS stats. I've often wonder where are all those foreclosures: "Where's the REO Listing?" because they're not listed on my MLS.
Are banks really holding on to these REO's because the don't want to flood the market?
Are they selling in "bulk sales?"
Is there really a big shadow inventory out there somewhere? I think there is! What are your thoughts? I would love to hear from other agents who are frustrated with this "shadow inventory" conspiracy theories.
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