Ever Worry About Your Shadow?
Shadow Inventory. It’s the new “catch phrase” in the real estate and lending industries, and it is something to be concerned about as a homeowner. Recently, there was a settlement between several of the largest banks and the government on what had been a process called Robo-signing. This pending settlement has caused a tremendous delay in lenders foreclosing on properties in default. With the 25 billion dollar settlement comes a very clear roadmap for lenders to use in processing foreclosures nationally. The pent-up properties that could have been foreclosed on months and months ago will now come to market freely. This supply of real estate inventory is called “Shadow Inventory”. Most of what you have been reading lately related to real estate is that the market is improving, which it is. January 2012 was the best January in 4 years. Last month will prove to be even better than January. The demand for properties in our area has jumped considerably since leaving 2011 behind. In a normal market this increase in demand, along with fewer properties on the market would positively affect pricing. That will not be the case this year. The demand will be offset by the normal properties coming to market, plus the build-up of the shadow inventory, which will be priced as distressed.
Most experts are calling for our state to see stable pricing this year with a few areas decreasing another 3 – 5% by year end, so it could be worse. We could be living in Nevada or Florida. The point is in two parts; first, if you are happy here and not thinking of selling then who cares what prices will do, right. Second, if you are in the “I am going to wait until prices increase” group, your wait was just extended a few years. The flow of inventory has already started, but it will increase as we get into June and July, so if selling is being considered anytime over the next 18 months now is the time to call your Realtor.
As I mentioned before, and this is the positive news, the demand for properties in Barefoot and beyond has taken a huge jump and properties are selling faster. Lending is expected to become a little easier this year for buyers, which will bring even more demand into the market. If everyone is walking around whistling in January and February, just wait for the excitement everyone feels as we move into spring.
The Barefoot Numbers –
There are currently 236 properties on the market in the resort, which is an increase of 2 from last month.
Single Family – 27 total including 4 pending and 5 distressed
Condo/Townhome – 184 total including 31 pending and 35 distressed
Land – 21 total including 2 pending and 6 distressed.
In conclusion, you should be very excited about the months ahead. Even with the threat of increased distressed properties coming on the market and that impacting the value of your property, we are still seeing a very robust market. It would be far worse to have the “Shadow” after us and the demand to purchase real estate as it was in 2010. We will have a better year in 2012 in the resort than any over the last 3 – 4 years and I think as pricing comes back that we will lead the way. If you would like more information about the robo-signing and shadow inventory just shoot me an email and I will reply with a comprehensive report for you. You can reach me anytime at firstname.lastname@example.org or (843) 241-1929. Keep looking for ways to positively impact your community and I will see you around the neighborhood!