We listen to television and newspaper reporters talk about “shadow inventory.” By definition, these are residential homes that are in foreclosure. There are several different steps or stages of foreclosure. ForeclosureRadar, a company that has done a great job in creating software that real estate professionals, investors and banks use to track homes in the foreclosure process.
When I look at statistics for Walnut Creek, California, I am amazed at the amount of this so-called “shadow inventory.” Here’s a snap shot.
Current homes –all types on MLS as of 1/31/2011:
196 homes–this is comprised of 100 traditional listings–33 short sales–63 bank owned homes
Data from ForeclosureRadar that can be considered “shadow inventory.”
49 Bank Owned homes
195 Homes that are going to auction–court house steps
153 Homes in pre-foreclosure–potential short sale homes
So what can we do with this data? It’s easy to assume that a majority of these properties will be put on the market. Currently, Walnut Creek has a low amount of residential inventory. It’s the hope of many of us in the real estate community that banks put this standing inventory on the market as soon as possible.
The past few months have seen a dramatic increase in buyers. I think we will see a lot of these bank owned and auction homes on the market this year. I guess that next conversation will be market stability. Are we going to start an appreciating real estate market in Walnut Creek?