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What is shadow inventory?

By Jeff Engum

Real Estate Agent with Open Mortgage

September 23, 2009 03:33 AM

What is shadow inventory?

Shadow inventory is the inventory of homes that will be soon on the market.

Sub prime and adjustable mortgages homes will soon be on the market with loan modification not working. We will see a ton of new inventory coming soon. With all borrowers in the US, 12% of all homeowners are late on there mortgage. That is a scary number! The market is very confusing today. The economist say we are out of the recession. The foreclosures are going up. Home sales are up but when you hit bottom you can only go up. What is really going on in the housing industry?

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Melissa King, ABR

Rivah Realty, LLC - Montross, VA

I agree! A lot of people in our area are thinking of selling for this very reason. We have had a pick up of home sales in our area, but I do think we have a lot of inventory to get sold plus any new listings coming on will make the market about the same as it is now.

Sep 23, 2009 03:40 AM

CIA Home Inspection

CIA Home Inspection Service Home Inspector San Bernardino - Los Angeles, CA

Informative post Jeff. We are all waiting to see what will happen as winter approaches. Banks are dictating the housing market right now. Not only from a lending perspective but also by supply and demand. They are trickling the REO's a little at a time and get 20 or more offers per home. It's working... FOR THEM!

Sep 23, 2009 03:43 AM

Jeff Craig

Hang Me Up Photos - Jamestown, NC

Greensboro Area Real Estate Photography

I think we will see a ridiculous number of homes for salt this spring. Sellers think the recession is over and the value of their homes is up. I'm seeing other builders starting specs again, even though their si still too much new inventory in the area.

Sep 23, 2009 03:45 AM

Li Read

Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC

Caring expertise...knowledge for you!

Very good question! This indecisiveness is mirrored in a reluctance to act, in my area, on the part of many potential buyers.

Sep 23, 2009 04:38 AM

Jeff Engum

Open Mortgage - Eau Claire, WI

In my area, the market is flat. I would love to see not extention of the tax credit but open it to everyone. That would kick start the market!

Sep 23, 2009 04:43 AM

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