Banks are holding on to shadow inventory. Shadow inventory… the new topic of conversation …soon to be common vernacular. Shadow inventory is foreclosure inventory that’s about to come on the market -property the banks have not yet foreclosed on, and property the banks have not yet released for sale. No, there’s not a likelihood that there will be a flood of foreclosed properties, dumped onto the market. The foreclosure inventory will likely be released in drips and drabs… but the experts agree… foreclosure inventory will increase, and it will affect the housing market – and prices… causing prices to drop.
The supply and demand ratio drives the real estate market, and determines prices. Homes sell if there are buyers. Homes sell for what buyers are willing to pay for them. 10 homes for sale … 1 buyer ? Guess who determines the price? That 1 buyer will determine not only price but also which will (and won’t) sell. Pricing your house HIGH (when there’s a handful of similar properties to chose from) means ‘your’ buyer will have other homes to chose from. Likely, that buyer will opt for the best value within their price range. The more inventory there is, the more competitive pricing needs to be. As inventory increases, prices drop. Your house will sell if yours is comparable or superior to the others, and if your price is compelling. Fewer ‘comparable’ homes (to yours)… means a higher potential sales price for you. Pricing and selling are linked with supply and demand. If you are wondering about selling now, versus waiting, please call me at 305-793-1365, or send me a note here . I’m happy to talk with you, or meet and consult with you. Together we can evaluate whether now is (or isn’t) a good time for you to sell… and whether waiting might be a better option.
