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 info@benguyton.com or (843) 241-1929. Keep looking for ways to positively impact
your community and I will see you around the neighborhood!
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