Shadow inventory is the number of foreclosed properties currently owned by banks (or will be owned in the future) that are sitting empty and are not currently for sale.
Many analysts use the "tip of the iceberg" analogy to describe the 'shadow inventory' situation, feeling that a massive number of distressed properties and underwater loans sits just below the surface. Some believe that the number of potential homes for sale greatly exceeds the number currently on the market. No significant appreciation of Alabama real estate and home prices will take place until the shadow inventory that exists works its way through the real estate market.
The map below shows the number of months it would take to clear the shadow inventory by state. The months' supply is estimated by dividing the shadow inventory and the monthly number of distressed sales. As you can see, Alabama has 8 months of shadow inventory to contend with.
Now take a look at how the Midtown Montgomery real estate market performed in March.
Midtown Montgomery real estate sales statistics for March show the average sales price decreased by 2% to $135,457 when compared to March 2010. The number of homes sold decreased by 47% in March. The median sales prices decreased by 8%, while market times decreased 34% or 65 days. The highest selling home price decreased by 26%, and the lowest selling home price decreased by 50%.
|Midtown Montgomery||March 2011||March 2010|
|Average Selling Price||$ 135,457||$ 138,275|
|Median Selling Price||$ 120,500||$ 130,500|
|Days On The Market||129||194|
|Highest Selling Price||$ 350,000||$ 470,000|
|Lowest Selling Price||$ 4,500||$ 9,000|
For the latest Midtown Montgomery real estate market conditions in your area, please call me at 800-HAT-LADY or visit HomesForSaleInMontgomeryAlabama.com.
Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed.