Foreclosure and Shadow Inventory
Friday, November 9, 2012 - Article by: Joe LaVallie -
So what is going on with Foreclosures and Shadow Inventory? Word is; foreclosures are declining. The September foreclosure filings were down about 7% and down about 15% from September 2011. In September there were about 180k foreclosure filings. Okay, what is a foreclosure filing? #1 Default notice, #2 Scheduled home auction, #3 repossession of home. The number of filings was the lowest since the middle of 2007. Remember not all filings end up with a sold home. Some are cured and the home owner retains ownership of the home. For information about foreclosures contact me.
Are you looking for a good deal on a foreclosure? Go where the supply is the greatest: Arizona, California, Michigan, Florida, and Illinois. These 5 states had about 50% of all the foreclosures nationwide. I guess it is true that real estate is local.
What about the mysterious "Shadow Inventory"? Builders and the NAR think it is used up because builders are building again. Look at your local area. Are you seeing new residential and commercial construction? I am here in Seattle. Most areas are seeing an increase in the price of homes and that is a good indicator that the bottom has been past. The Residential Price Index indicated that non-distressed home prices rose for the last six months as of August.
Housing starts increased 15% in September as well as Building permits. The California Association of Realtors asserted a shortage of homes for sale and the median price was at its highest level in four years. Don't live in California? Buy a non-owner and ride the wave. A lot of foreign buyers are doing just that. Smart money?
If you are considering buying a foreclosure please use an educated Realtor. Many homes are sold "as-is" and they come with defects and damage and may not be financiable and in some cases uninhabitable.
Talk about uninhabitable, there was an electrical fire on one of our ferries.
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