Where Did They All Go??

Just last week there were 372 properties in Santa Clara County that went back to various banks. It would appear that the banks are simply sitting on them, waiting for the market to get better. This is causing a huge build-up of property that experts call "shadow inventory." Right now prices are up and inventories are down significantly in The Bay Area. If they release these homes into the market a little at a time, the values will continue to hold and demand will remain strong. However, if the banks move too quickly or release too many properties, the values will decline further-a concern of everyone in the industry, and of course home owners. Look for many more properties to enter the market and continued low interest rates for buyers.