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Foreclosure Shadow Inventory

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In this video I talk about Shadow Inventory. In Real Estate, Shadow Inventory are those properties that are likely to come into the market in the near future. An example of Shadow inventory can be homes taken by banks in the Foreclosure sale at the courthouse (also known as Bank Owned, Corporate Owned, or REO – Real Estate Owned) that haven’t been put in the market yet. Another example could be properties in Pre-Foreclosure (homes that are in the process of Foreclosure) that are not listed for sale yet, or even some people consider Shadow inventory the homes that are upside down (The Mortgage Balance is higher than the property’s value) and not yet in Foreclosure and are not listed for sale. I don’t necessarily agree that the last group of homes should be counted as Shadow Inventory, because a lot of them are still making payments, but the people that count them as Shadow Inventory bet on most of them stopping payment soon and letting the house go to Foreclosure.

Anyway, some people are estimating that Shadow Inventory could reach up to 8 million homes or more Nationwide in 2010 and they say we expect sales of about maybe 5 million homes only, which may cause another depression in home prices again for 2011, and it could take years before all the shadow inventory is sold.

Now, I am not going to get into details about whether this is good or bad news, it all depends on how you look at it. If you are in the Real Estate as an investor, and you know what you are doing, you could make a lot of money in the next few years.

In this video I show you how to use the power of information to be on top of your local market. People love to talk about nationwide numbers, and I understand it gives you an idea, but you need to know your local market, because most times your market is not going to be anything like the nations average. In the video I concentrate on the shadow inventory coming from Foreclosures that are not for sale as shadow inventory, and I show you how to get the number in your county by using Xima.

Since my time is limited on the video, I was only able to demonstrate the calculation for Miami Dade, but I present a table below with the numbers for all the counties we have available with Xima:

Shadow Inventory of Single Family Homes as of today July 28^th, 2010:

* Total Inventory: All Single Family Homes Listed for sale by Real Estate Agents as of 07/28/2010
** FSI (Foreclosure Shadow Inventory): All Foreclosure Single Family Homes not yet listed for sale by Real Estate Agents as of 07/28/2010

These are only the numbers for Single Family Homes, I didn’t include numbers for Condos/Townhomes/Villas. Also, I decided to include the Total inventory for every county so that you can make the comparison between the active listings and the number of foreclosures that are not even listed for sale yet. In some counties, when these properties come into the market, the active inventory could potentially double the present the inventory.

Another interesting number to add to this mix would be the total amount of sales year to date for 2010. For example: According to Xima, in Miami-Dade we’ve had 11,232 sales YTD, we have 8,806 active listings, and 7,431 Foreclosure Shadow Inventory properties, a total potential inventory of 16,237 properties. In 2009 there were a total of 20,224 sales in Miami-Dade.

I want to thank you for taking time to review this information. Please send me a quick comment below, I want to know your opinion about the article. Also, you can always subscribe to receive updates when articles like this are published.

MORE INFORMATION

Xima USA provides the best and most accurate foreclosure and pre-foreclosure information, data, and statistics available, making it a valuable resource to invest wisely Xima USA offers you everything you need to profit from foreclosure investing. It is your one stop destination to search for foreclosed homes, foreclosures Florida, properties with positive equity, short sale, pre-foreclosures or distressed homes. It creates comprehensive property comparison reports in a specific area, giving you a very powerful tool when making or negotiating an offer. XimaUSA is mainly geared towards real estate brokers and investors, and the main purpose is to identify the best investment properties. You are able to search for properties with 30%, 40%, or even 50% equity, and identify possible short sales. You can also identify distressed sellers and FSBOs, so you may easily get those hot listings.

All this information is collected from many different sources and presented to you in one place, in a very easy format. This will give you the ability to get MLS listings information, public records, mortgage, pre-foreclosure and foreclosure details, you can get comparables of active listings, closed sales and rentals. Best of all, you can customize and print reports, mailing lists and labels for easy mailings.

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