National News Says Shadow Inventory is Shrinking. What About Long Island?
The fact that shadow inventory is shrinking significantly overall across the country over the last two years is good news. That is a good indicator that the housing market is in a true recovery after a few false starts. Shadow inventory is a term for distressed properties (e.g. foreclosures and short sales) that have not been sold yet OR homes that sellers are delaying putting on the market until prices improve. The dwindling amount of distressed properties is good news for the economy. The fact that homeowners who were once on the fence as to whether it was a good time to sell are now climbing down off that fence and putting For Sale signs on their lawns indicates an upswing in consumer confidence: sellers feel that prices are at a level where it is now worthwhile to sell.
Thanks to our friends at Keeping Current Matters, here’s a map showing how many months’ worth of shadow inventory there is:
According to the map, the New York area is in the red, meaning it has upwards of nine months of shadow inventory, the most in the nation. Don’t lose heart. There are reasons behind this. For example, in our neck of the woods, distressed properties took longer to reach the market than in other areas because of the judicial process required of the banks before they could foreclose. The Long Island area is still enjoying “Shadow Inventory Shrinkage.” Just a few months ago, we had about 18 months of shadow inventory. Today it is more like 12; that’s a 33% decrease. We’re on the right track.
What does this mean to you? It depends on who you are in the real estate market…
If you are a distressed homeowner, don’t delay. Speak to a real estate professional who is truly experienced in distressed sales. There are often options that you might not be aware of…but you have to act quickly otherwise your window of opportunity to get out relatively unscathed might close on you. Don’t let that happen.
If you are a Seller, don’t delay. Existing home prices have stabilized and in some cases, value has ticked up a bit. There is a shortage of homes for sale right now, due to the time of year it is and other factors, too. Serious, qualified buyers are out there…and they are buying. Put your house on the market now and it won’t have to fight through the crowd to be noticed by a motivated, qualified buyer.
If you are a Buyer, don’t delay. Existing home prices are stable and will be on the rise…and so will interest rates. This is a sweet spot of the market if you’re a buyer. Prices are reasonable and mortgage rates are super low. Neither of those things will stay that way forever. How long will it be this way? The only way people know for sure is when prices and rates have already risen…and by then it will be too late to take advantage of this incredible bang for your buck you can get now.
Bottom line: Things are looking up! If you are thinking of making a move – either out of trouble, out of your current house or into a new home – DON’T DELAY!
If you have a real estate need, the professionals at Exit Realty All Pro will fullfill it for you. Whether buying, selling, renting or even if you just have a question, consider Exit Realty All Pro your best real estate resource.
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