While nobody knows for sure about the timing of the release of foreclosed properties on the market by lenders - banks will not flood the market all at once even if they have an abundance of foreclosed inventory since a rapid rise in supply would depress prices sharply - you can "bank on it" that there will be a steady supply of foreclosed properties hitting the market throughout Camden County and Burlington County for several years to come. That is because it was revealed in late 2011 that New Jersey has the unfortunate distinction of having more months of shadow inventory - properties that are expected to come on the market as foreclosures - than any other state in the entire United States.
Estimates in December 2011 put New Jersey's shadow inventory at 51 months supply - i..e, that it would take 51 months at the current rate of home sales in New Jersey for the available shadow inventory to be sold assuming that only the shadow inventory would be available on the market. (The next highest shadow inventory state had 35 months of inventory.) What is more, shadow inventory for Camden and Burlington Counties are higher than the average county's shadow inventory. And if that were not convincing enough, foreclosures have been happening at a dizzying pace since the Robo-siging settlement became effective last year.
So, yes, new waves of foreclosed inventory definitely are on the way. We can only speculate on the timing, but it is a virtual certainty it is coming and anyone who tells you differently lives on a different planet than you and I do.
Jonathan E. Brill, Ph.D.
Keller Williams Realty
Beowulf Plaza, Suite 200
1814 Route 70 East
Cherry Hill, New Jersey 08003
GET THE RESULTS YOU DESERVE.
Put my Ph.D. in Marketing and Wharton School
business education to work for you!
Main Office: 856.321.1212