Shadow Inventory….what lurks in your neighborhood?

Shadow Inventory. The inventory of homes in a specific area that is in a distressed situation. Meaning, they are in pre-foreclosure (NOD), an auction date has been set or are  they are bank owned. These properties will be sold at a discounted rate, and  due to their nature,  inversely affects our real estate health.

“The problem is you have all these properties coming down the pipeline that are nearly certain to hit the market. That’s going to be a negative for the supply-demand equation,” said Diane Westerback, Managing Director for S&P and an author of CNN’s report in January of this year.

http://money.cnn.com/2011/01/20/real_estate/shadow_inventory_rise/index.htm

Do you have any you idea how many homes in your zip code are distressed?

Over 200 homes in the 91103, 91106, 91105 and 91108 are in distressed situations which can lead to your property values to diminish if and when they are sold at a discounted price.

Email me  and I can give you an idea of what home are distressed in your area. Knowledge is everything!

Christina

 

 

 

This so-called “shadow inventory” may depress home values and delay the housing market recovery.

 

S&P defines shadow inventory as properties whose borrowers are (or recently were) 90 days or more delinquent on their mortgage payments, ones currently or recently in foreclosure or that are back in the hands of the banks.

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10 Responses to Shadow Inventory….what lurks in your neighborhood?

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