Dear TZ - How does the Shadow Inventory affect homes in Union County?

By
Real Estate Agent with Samsel & Associates 0790808
https://activerain.com/droplet/BHv

Dear TZ,File:Shadow 2752.jpg

I want to buy a home in Union County but I keep hearing about something called a shadow inventory. What is it? What does it do to prices in Union County?

Thanks,

Buyer Bob

 

Dear Bob,

Homes that have been foreclosed that are now bank owned properties.  Much of that inventory is not yet on the market, hence it’s in the shadows.  We measure the amount of inventory in months, meaning that if no new houses come on the market, how long will it take to empty the shadow inventory at the current rate of sales.

New Jersey currently has the greatest shadow inventory - a 65 month supply.    If no other homes come on the market it will take 5 years and 5 months to clear out the inventory.  Sounds like New Jersey will have a rough time.   In truth parts of the state will, while other areas won’t be affected as badly.  For example, Newark will be hit much harder than let’s say Westfield or Summit.  Towns surrounding the hardest hit urban areas will more likely feel the effect of the shadow inventory more than an upscale suburb will. 

So what does it all mean?  In Union County,  the supply of homes is larger than the demand for homes, reducing prices. You may pay less by waiting, but if interest rates rise the way the experts are predicting, your monthly payments will probably be higher than if you were to buy now.

Good luck!

- TZ

 

Please note that all information is reliable but not guaranteed.  Please consult with your Real Estate professional before making any Real Estate decisions.

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~ Wayne & Jean 

Union County, NJ - a great place to live and work!

If you're looking to buy or sell a property in Union County, call us at 908-917-4189 or email TeamZuhl@gmail.com.

 

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All opinions, information and data provided is deemed reliable but is subject to errors and omissions. Not intended to solicit other Brokers' clients. We cooperate with them fully. 

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