Shadow Inventory How Big is It?

I do not believe, over al,l that we are going to be hit with a huge dump of shadow inventory homes, certainly not before elections.  Yes, I agree there is shadow inventory, but I believe there will be a great effort to drip this inventory into the system vs flooding the market with distressed properties that push the prices down and have negative ripple effects for the economy.

Hello Erv! I certainly hope we don't see a 22% drop in housing prices. Some areas are being hit harder than others, but here in the Houston area, things never got out of hand. We saw a slight dip in the last couple of years, but this year everything is on an upward swing. Lots of sales, prices are going up, inventory is about right!

Erv, I guess it l depends on what your loking for.....Right now in our market eveyone wants new or near new construction....for that there is not enough and demand and prices are getting higher.

These predictions will not stop and most of them don't make a lot of sense, but someone is buying, otherwise they couldn't keep selling the information.

All markets will always be efficent. All markets eventually cure themselves, over time.

Erv, I've got to agree with Joe#4, As we know markets are driven locally and I think that most of the negative news that we hear about are in areas that were hardest hit, but after talking to many agents in those areas, it doesn't seem to be necessarily true that they are headed for another dip...homes are selling with multiple offers and many times above list.  In my area there are a lot of homes on the market, but I would not call it a glut...I would say that homes still on the market suffer condition issues and poor pricing from the get go.  I'm the busiest I've ever been, but then every market is local.

Erv, I also agree with Joe & Nick. There is not enough inventory here. People are beginning to realize the deals were last year and the now have little to no room for dealing it is what it is here in Cinco Ranch!

Good question Erv, but I disagree about a 20% drop in prices.  Inventory has been shrinking and the lenders show no sign of dumping inventory.

IMHO, Real Estate is local as well as life and they are both what you make it. I have found since the early 80's that Chicken Little is a myth but there will be a sky falling somewhere everyday it just doesn't happen to be where any one truly sees it.

No I don't believe that if you break your arm that positive thinking will heal it without getting a cast but I do believe that everything starts between your ears and what is happening there becomes reality. I interview agents from time to time within days of each other and it never surprises me that their opinion will differ as to what the market is depending on what they perceive reality to be.

I do the absolute best I can do everyday and everyday is what I make it.

Good evening.

There certainly is NOT enough inventory in our neck of the woods. I agree with Joe that all markets eventually cure themselves. Interesting post - Thanks.

Erv

I think there is a large supply of shadow inventory but the banks will continue to release it slowly and try to find other solutions to their inventory, distressed sales situation. This is why I feel it will be the end of next year till we truly see the light at the end of this real estate tunnel. cheers cvc

Have an outstanding week with your camera in hand.

Enjoy the days of summer with your camera in hand.

I'm not sure what the right answer is here.  We still have inventory here in Fort Wayne, but it is really starting to balance out.  Good luck to you!  

I think it will be a slow process but the shadow inventory will slowly drip back in. The last thing this administration needs is for the housing market to crash and that is why they are holding all this inventory back. The same with the oncoming depression it can only be held back for so long.

Erv, we are seeing a slight increase in pricing, and saw a stat that we were in the top 5 cities for increasing prices - yeah Denver!

I have to agree with Gabe. I do not think prices are going to drop, we are seeing increases here. The inventory is just so low that it is no longer a buyer's market and I don't see that changing.