Sarasota homes for sale battle National Association of Realtors’ “happy-talk” and “shadow inventory” as Sarasota real estate market searches for firm ground.
That's right, don't worry! Be happy...regardless!Recently, I caught a post by an Albuquerque Realtor who's "dead on" about shadow inventory.
What’s “shadow inventory,” you ask?
What does it mean for our Sarasota Real Estate market?
That’s the point of today’s discussion: how shadow inventory…commercial real estate meltdown…and ALT-A & ARM mortgage defaults signal more challenging times ahead.
Amidst this continued breakdown, the National Association of Realtors (NAR) continues parading through town, chanting “There’s never been a better time to buy a home.”
Unfortunately, the NAR isn’t disclosing HOW to make today’s home purchase a “safe” one…at least as safe as it can be.
Click Read More below now for my response to Albuquerque Realtor Jay’s candid remarks about shadow inventory reality and necessary smart home-buying tips.
SHADOW INVENTORY LURKS IN “SHADOWS”
Question: What is shadow inventory?
Question: What potential impact does it have on the value of your home?
As I mentioned a moment ago, I ran across Jay’s comments on this topic and I just had to respond:
What follows is Jay’s comment and my response:
Shadow inventory to follow
Posted at trustjay by Jay Redlin
Jan. 28, 2010http://www.realtown.com/jredlin/blog/housing-inventory
According to the latest CRS magazine, Certified Residential Specialist there will be “Shadow Inventory” in our future. Shadow inventory represents all the folks that tried to sell or were thinking about selling and didn’t in this market. In the future when the market takes an up tick and all the banks finally release their toxic inventory, here will come the “Shadow Inventory” and we will be over loaded with a flood of inventory driving the values down again. SELL your present clients on the idea that waiting to sell when the market comes back may not be the best thing given the banks inventory and the shadow inventory waiting in the wings.
Jay, you make a GREAT point!
Especially in Sarasota, Florida, think about NOT selling if you don’t need to sell.
Unfortunately, most sellers today NEED to sell. Job losses in and around Sarasota continue suppressing PRICES. Naturally, our local MLS gets giddy about # of sales at the expense of continued price erosion.
Eventually, we WILL have to address SHADOW INVENTORY.
BTW: For those who aren’t up to speed on all this realtor “lingo,” shadow inventory includes properties (usually vacant) rotting away, perhaps in some state of foreclosure or bank-owned…but not listed. They’re just sitting around!
I don’t know Albuquerque’s foreclosure situation, but in Florida we are besieged by foreclosure. All of Florida, it seems, is “underwater”
Quite frankly, SHADOW INVENTORY is both good and bad!
- On one hand, the number of distressed properties hitting the market MUST be CONTROLLED. This is good.
- BAD is what is happening to these properties. In my own “nice” neighborhood in Sarasota, Florida, we have SIX properties defined as “shadow”…in just one neighborhood!
In HOT, HUMID Florida, no a/c…no maintenance…no “preservation” or anti-vandalism. Once beautiful homes now feature MOLD….
In NM, you don’t address mold (lucky you), but in Florida mold is a death sentence for a property. What do you think will happen to property values as a result of “toxic” properties (rotting for months and years) hit an already stressed market…even months from now when market conditions improve?
How will valuation “experts” avoid comping these toxic properties?
Greed Wins Out Over
Regard For Others!
Earlier, I mentioned ulterior motive. On one hand, dripping distressed properties onto the market HELPS control a fragile market.
On the other hand, we now are aware of players such as Michael Dell’s buddies at OneWest (formerly IndyMac) & their own ulterior motive…and there’s nothing good about GREED!
Unfortunately, I’m trying not to think about shadow inventory. Too many people losing jobs, homes & stability.
At least in Florida, we’re many JOBS away from a stable housing market…with more ALT-A & commercial “distress” on the way.Alas, these are depressing topics for a rainy day.
What questions or comments do you have about shadow inventory? Are you or someone you know facing foreclosure? PLEASE call me now to discuss your situation and options to keep you out of foreclosure. Scroll down to leave your question or comment. Even if you disagree, I want to hear from you. Thanks!
Sarasota homes for sale continue struggling to find firm ground amidst continued job losses and breakdown of the Sarasota commercial real estate sector.
Shadow inventory to follow
According to the latest CRS magazine, Certified Residential Specialist there will be “Shadow Inventory” in our future. Shadow inventory represents all the folks that tried to sell or were thinking about selling and didn’t in this market. In the future when the market takes an up tick and all the banks finally release their toxic inventory, here will come the “Shadow Inventory” and we will be over loaded with a flood of inventory driving the values down again. SELL your present clients on the idea that waiting to sell when the market comes back may not be the best thing given the banks inventory and the shadow inventory waiting in the wings.
{ 2 comments… read them below or add one }
Your presentation 0r the speach is very powerful.
I do not need any service , but i would like to follow your shadow, you were very precise, and very balance talk to offer service, Very good Job.
Keep me in your list as a friend and send me your presentation, you are a powerful individual.
Excellent and no comparison to others….NO Way.
Thank you, Kazi, for stopping by and commenting. Sign up for my RSS feed to be alerted to each article posted. Thanks again for your comments I appreciate people like you taking a moment to share a comment.
Mike
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