What Is Shadow Inventory?
Learn more about shadow inventory 2014 and how it affects you
By Jason Boone
Shadow Inventory is defined as the amount of homes or properties that are currently in delinquency or heading to the foreclosure process.
According to recent statistics from the National Association of Realtor’s and Black Knight Financial Service only 4.17% of homes in the United States were delinquent or in foreclosure during the month of June and that’s a 5.6% from last year (shadow inventory 2013).
Good For Home Appraisals
With fewer homes in delinquency across the United States this will ultimately help the appraisal process because there will be fewer homes in a neighborhood that are delinquent and that’s a good thing because this helps appraisers do more accurate home appraisals.
Becoming a Thing Of The Past?
Thanks to the National Association of Realtor’s confidence index we know that as of June 2014 foreclosures only comprised just 8 percent of home sales across the United States while Short Sales were just 4 percent of home sales activity nationwide.
Many States Burning Through Foreclosure Inventory
The encouraging thing about the decline in foreclosure and short sale inventory across the United States is that buyers are quickly eliminating short sale and foreclosure activity in many states like Arizona and California but is shadow inventory soon to become a thing of the past?
Shadow inventory by state still looms, especially in states like New York and New Jersey but overall the Real Estate recovery and reduction in shadow inventory is very encouraging for the economy and growth of the Real Estate market into the future.
Planning On Buying or Selling In Bend?
If you’re planning on buying or selling a Bend Oregon home contact me, Jason Boone, Principal Broker at Duke Warner Realty | Skjersaa Group at (541) 383-1426 or by emailing me at Jason@sgbend.com.