The housing market recovery is on the way.
Wednesday, August 24, 2011
The good news: the housing market recovery is on the way...
The bad news: it's probably 2 years away...
The problem:the large number of distressed properties that were being held up in the banks by the courts from hitting the market. These properties are referred to as the 'shadow inventory'. Now, this shadow inventory is beginning to be released into the market as state courts allow the banks to continue the sale process, which was being investigated. This will cause the market to be "flooded" with distressed properties which will a) attract buyers away from non-distressed properties and b) lower comparable home values that assessors use.
How does this translate into a housing recovery?
Homeowners aren't behind on their payment in as high numbers so the shadow inventory isn't growing as quickly. So, once these homes get in the market and get sold, the market can come back down to normal inventory levels; recovery.
What's this got to do with me?
If you're thinking of selling, get your house on the market NOW! Once the market is hit with all these home, your sale price will likely drop significantly. Otherwise, consider call us in 24 month :)
Cheers,
Brian