Are there really 2 shadow inventories?

By
Real Estate Broker/Owner with Ocean View Realty Group in Ormond By The Sea Florida BK559597

Are there really 2 shadow inventories?

 Everyone knows and talks about the "shadow" inventory of bank owned and other foreclosures that haveShadows at the beach not yet hit the real estate market. I know of several Ormond By The Sea homes and condos that are bank or Government owned that have not yet been placed on the market for sale. Maybe they are waiting so as not to flood the market or maybe they are trying to determine who actually owns the property and getting their paperwork correct before trying to market the asset. Whatever the reason for delay there will certainly be an impact on value of similar neighborhood properties once those that have been vacant for months finally come up for sale.

And the second "shadow" inventory that nobody is talking about? Shadows at the beachThis is the home or condo that is not on the market because the owner cannot bring the price they "want" in today's market. We talk to these owners every day and when the market turns around there are a number of owners who really want to sell but are holding on and creating a second shadow inventory.

Are there really 2 shadow inventories or does the second have its own name?

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Have a great day

Al Raymondi
Ocean View Realty Group
1350 Ocean Shore Blvd. Suite A
Ormond Beach, FL 32176
Ormond By The Sea Florida sales and rentals of homes and condos www.ovrealty.com 
Click the Realtor Logo below to search the Daytona Beach Florida area MLS anonymously.
386-441-8245
Fax 386-441-2407
Mail to ovrealty@aol.com
Ormond By The Sea Florida Vacation rental homes and condos information is at www.ormondbeachcondorentals.com 

Serving Ormond Beach and Ormond By The Sea in the Daytona Beach Florida area from the same location since 1991.

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Rainmaker
694,665
Clint Mckie
Desert Sun Home, commercial Inspections - Carlsbad, NM
Desert Sun Home, Comm. Inspection 1-575-706-5586

Hi Al,

The second of the "Shadow inventory"  Is called the "sideline seller". These sellers are waiting on the sidelines, waiting for the market to improve to the point they will make money when listing the home.

Have a great weekend,

Clint

Jun 17, 2011 11:52 PM #1
Rainmaker
1,238,046
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

There is REALLY a THIRD shadow inventory of properties where the owners really want to sell and have ELECTED to rent their homes for the next 2 or 3 years....these homes will come back on the market at a BETTER sales price OR owners will like the benefits of being a landlord and they will keep them as rentals...which STILL removes them from the SALES market

Jun 17, 2011 11:54 PM #2
Rainmaker
3,308,187
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

How much "shadow inventory" is out there regardless of how you catagorize it? Only the shadow knows! Enjoy the day!

Jun 18, 2011 12:03 AM #3
Rainmaker
1,100,376
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Mornin' Clint.  I like that Sideline Seller.  You have a great weekend also.

Hi Wallace, you are correct that there are many owners renting their homes now since they are unable to sell at an acceptable price.  Most of those will not come on the market for sale until the foreclosure shadow market is sold out.  Thanks for your comment and have a great day.

Hi Wayne.  Thanks for stopping by to comment this morning.  If the shadow knows will he tell us?  Have a great day

Jun 18, 2011 12:16 AM #4
Rainmaker
4,797,528
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Al, absolutely, they are there.  Some of these will slip into short sales, some will end up in the real shadow.  Time will tell.

Jun 18, 2011 12:31 AM #5
Rainmaker
1,100,376
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Thanks for stopping by to comment Gabe.  Many of the potential sellers that I have talked to still have equity but it is not enough, they want more.

Jun 18, 2011 01:54 AM #6
Rainmaker
925,799
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

Al, I never thought of the second "shadow", but I can tell you now that it does certainly exist!

Jun 18, 2011 02:06 AM #7
Rainmaker
1,100,376
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Many potential sellers are holding out for a better return Ron.  Thanks for commenting.

Jun 18, 2011 02:18 AM #8
Ambassador
3,093,339
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I'm not buying the fact that there is ANY shadow inventory...at least not in my market.  Homes are in short supply.  If banks had 'em they'd be dumping them and selling them quickly.

Jun 18, 2011 05:05 AM #9
Rainmaker
1,100,376
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Congratulations on having a market that has turned around Chris Ann.  We are still waiting for that to happen in Ormond beach although there are some signs......... being at 2002 values is a bummer for many would be sellers.

Jun 18, 2011 05:10 AM #10
Rainmaker
2,036,914
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Fort Worth, TX
Selling Homes Changing Lives

Al,

Shadow Inventory, sideline seller, tenant owned property.... no matter what it's called, it's still spooky. These are eerie times. Everything is up for grabs and it doesn't seem to be getting stable anywhere that I know. Here in Texas, we are supposed to be doing better than other states, but gosh, I really don't know what to believe any more. I feel like we are living in a trick or treat world - you just never know what you're going to get. Where's the fortune teller, maybe she knows something we don't?

Jun 18, 2011 09:32 AM #11
Rainmaker
1,100,376
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Thanks for the comment Patricia.  Seems like we a sputtering now and that could mean we are at or close to the bottom of the market decline.

Jun 19, 2011 12:18 AM #12
Rainmaker
5,428,807
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Price are firming up in Maryland and more home owners are listing their homes for sale. You will see more moving south very soon.

 Blooming for you!

Jun 19, 2011 12:57 PM #13
Rainmaker
1,100,376
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Thanks Roy.  Sell those northern homes and send the sellers to Florida with cash.  I like that plan.

Jun 19, 2011 02:48 PM #14
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Al Raymondi

Ormond By The Sea Florida - Home and Condo Sales
Come live by the beach in Ormond By The Sea Florida
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