Shadow Inventory Update
Shadow inventory, as you might know, is the inventory of real estate that the banks own, but is not on the market. So what's all the fuss about the shadow inventory? Many people think that the added supply will have an even greater, negative effect on the market if it were to be dumped all at once, As a result, folks lobbied to get a moratorium put in place to prevent the banks from dramatically increasing the supply of houses on the market. This was put in place before the Spring market played out so as not to upset the apple cart so to speak.
The word on the street was that come Summer, all bets were off. However, that didn't happen. The moratorium is still in place. Houses under $700,000 have been getting into contract quicker. And many houses on the lower end have had multiple offers. As a result, inventory in that price range is starting to dry up believe it or not.
The conventional wisdom is that foreclosures will have to stop, in addition to a significant improvement in the job market, before real estate can really recover. In the meantime, I think there are going to be some good deals on Marin real estate, in all price ranges. As we head into the fall, seasonality will start to play into the equation as well.
For High End Real Estate Representation contact Jonathan B. Jacobs.