As realtors here in Tampa Bay, we often hear buyers referring to this huge arsenal of inventory lurking ready to descend and drive prices down. It is not that this is fiction but there are some pertinent things to understand along with inventory. First and probably most important, is that our inventory level stands at record lows… only 6101 active listings throughout the entire Pinellas County representing a drop of 21% since the end of 2011. Of that inventory only 17% are distressed and what we are finding is that the in-flow of distressed inventory is being absorbed faster than it can build momentum. A quick definition of ‘Shadow Inventory’ is the supply of homes in foreclosure or with seriously delinquent mortgages but not yet on the market.
Nationwide, CoreLogic out of Washington has cited a drop in shadow inventory from 2.6M in October 2011 to 2.3M in 2012. The media and many housing experts had predicted a huge impact from shadow inventory resulting in inventories to skyrocket and put downward pressure on home prices. An increase in short sales as an alternative to foreclosure, along with loan modifications has help reduce this impact.
According to Anand Nallathambi, president of CoreLogic, “We expect a gradual and progressive contraction in the shadow inventory in 2013 as investors continue to snap up foreclosed and REO properties and the broader recovery in housing market fundamentals takes hold.” Locally, the reality is that these foreclosures are golden and usually priced aggressively. For that reason, the pent up demand for property along this Tampa Bay coast is multiple offers and often bidding wars. If you as a buyer make a bid for one of these foreclosure properties pay heed to your realtor who understands this current environment. No one wants you to overpay, but on the other hand in the current environment low ball offers are going nowhere. Visit us at www.purtee2.protechflorida.com and learn more about how The PURTEE Team can help navigate you through the purchase process.