If you are hopeful for a turn around in real estate, think again! A McClatchy analysis of four years of foreclosure data and thousands of property records has found record-high levels of shadow inventory in several housing markets across the nation.
Even though real estate industry analysts routinely leave this “shadow inventory” out of their reports, their influence on home values is growing. Consider this: In the supply-and-demand-reliant real estate market, the national supply of homes is officially listed at about 3.5 million, or about nine months' worth; sales are on track to reach about 5 million this year.
But once shadow inventory is added, that supply more than doubles, to at least 7.5 million. A healthy housing market has about a six-month supply of properties, which would be about 2.4 million. This would suggest that the market is oversupplied by a factor of three. Watch these prices continue to go down!
Posts
No comments:
Post a Comment