Not sure what you are referring to. No, I have not read all of this home buyer's posts but this post alone contains a link that I reviewed this week online along with many other articles and write ups on the subject of "shadow inventory". My agents are having a difficult time locating available properties for our many buyers. The supply of homes is weak at best and frustrating for all.
The inventory in what you might consider the foreclosure capital of the country outside of Arizona, Nevada and Florida is drying up quickly. However, you and I know that foreclosures continue at a steady rate with forecasts of surmounting properties defaulting even on prime fixed rate loans.
So I ask....where are these reported bank owned properties and why do the banks get to regulate the ebb and flow of our regional economic structure?
Diane Wheatley, Broker
I find it very interesting that the lending institutions are allowed so much power or control over our current inventory to the extent that this withholding of properties for sale has caused "mini bubbles" to appear in our regional market. Supply and demand at the hands of the lenders that had their hands in the honey pot filled with today's mortgage meltdown.
I have a lot of opinion regarding this issue but I'll save it until I can attempt to rationalize it in a more diplomatic manner. Thanks for sharing!
Diane Wheatley, Broker
You should probably read all 4 or 5 threads that Dawn has started here today, on pretty much the same subject. I don't know if you will be able to formulate an opinion useful in San Berdoo County, but you might have a more relevant understanding than if you only read PAID bubble blogger fodder on Google.
Good luck to you out at ground zero.
To answer your question above, YES, I have seen numerous articles like the one above, seemingly all cut & pasted from one source - RealtyTrac.
One problem with the data in the article is that it is at least 4 months old, and probably older.
As for the potential effect of this alleged shadow inventory, on prices in Orange County, I have already addressed that in the OTHER 4 or 5 threads you've started.
Look at the data 20k homes is 10 months inventory as Feb Sales levels which are typically low. At the end of February supply and demand were equal. If the banks did nothing but release one home into the market for every one they sell then by next month there will be another housing shortage and prices should be moving up (artificially).
Its clear the banks are moderating the release of inventory. It's not a doomsday scenario. Assuming the greater economy starts to revover we should be out of the worst of it by the end of next year.