Market Report – The Case of the Shrinking Shadow Inventory

ShadowsThe “shadow inventory” has been a term used in the last few years to describe homes that are in foreclosure or delinquent and not yet sold or listing on the market.  It has been looming over us for several years and caused much uncertainty for home sellers and buyers.  Sellers have been unsure when to list their homes and buyers held off on buying because they felt the market may still drop farther.

Well for the buyers that waited – sorry to tell you but the bottom of the real estate market in Orlando has come and gone.  The good news is at least you can still get record low interest rates and the affordability is still top notch!

For home sellers, now is the time to list.  The inventory has declined to a level that is in line with the number of buyers and in many price ranges it is considered a seller’s market.  This shift is largely due to the fact that this shadow inventory is shrinking.  The number of homeowners who are delinquent on their mortgages (the delinquency rate) has dropped to 5.41% in the last quarter of 2012.  Most economists expect it will continue to drop slowly in 2013.  This slowing of the delinquencies lends to a little more confidence that the foreclosure gap is closing up and the market will return to some normalcy in years to come.

Don’t expect sweeping increases in values just yet.  Although some neighborhoods have seen increasing values in the last few months, Florida was one of the hardest hit with foreclosures and still is one of five states making up 45% of the total number of distressed properties.  Real estate is local so check with us to see if now is the right time for you to list.

You can reach us at 407-494-2820 or Kathryn@ThinkLiveBe.com.   We specialize in Downtown Orlando, College Park, and Winter Park homes for sale.

Image Credit:  CalTech from KevinHasaCamera via Creative Commons License

About Kathryn Stelljes PA

As a graduate of the University of Central Florida and the Art Institute of Pittsburgh I have both knowledge and expertise in selling and design. I earned a Bachelor's Degree in Marketing, a degree in Residential Planning, and I am an Accredited Home Staging Specialist. My background in these design fields has advanced my ability to sell in the realm of residential real estate. As a native Floridian and resident of Downtown Orlando I understand the growing needs for homeowners in the Central Florida home market and specifically the Downtown market. I enjoy walking my two Italian Greyhounds around town, I love interior design and all design blogs, social media networking, and anything marketing related. Founder and Member of Orlando Women's Network, Member of National Association of Realtors, Florida Association of Realtors, Orlando Regional Realtor Association. Accredited Home Staging Specialist (AHS), Certified Short Sale Professional (CSP), and a Graduate Realtor Institute designee (GRI).
This entry was posted in Economy, Monday Market Report, Orlando News, Real Estate News and tagged , , , , . Bookmark the permalink.

2 Responses to Market Report – The Case of the Shrinking Shadow Inventory

  1. Pingback: Monday Market Report – Florida Foreclosures | Downtown Orlando Living

  2. Kathryn

    Just had someone ask me about “bungalows” for sale in the downtown/colonial town market…… if you have a couple I can forward them. Third-party person but I would be happy to pass them on.

    Cathy Sands

    Blue Daze Designs

    407.895.5112 office

    407.719.4590 cell

    http://www.bluedazedesigns.com

    http://www.freshredhead.com

    http://www.facebook.com/bluedazedesignsorlandointeriordesign

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