So for the last few years, all the news kept saying that the banks were going to unleash this storage of shadow inventory in to the market and that will bring the market to the bottom. Well, I'm not seeing this flood of foreclosures just yet, but what I will say, I'm starting to see more and more pop up lately thanI have in the last year or year and a half.
What is shadow inventory?
From my understanding, shadow inventory are homes that the bank has foreclosed on, but has yet to release them for sale on the market. Most may have come from the robo-signing issue a couple of years ago.
What am I seeing in the Market?
I'm starting to see short sales move in to the forclosed arena. This beautiful property on the ICW that was a short sale and now it is owned by the bank. I'm not sure why it didn't move because the surrounding homes are beautiful and the owners were very open to showings. So the only things I can think of is that the offers it did receive fell through due to the buyers got tired of waiting for the bank to respond to their offer or that the bank wasn't reasonable with their selling price.
What Should You Do?
The most important thing you can do if you're looking to buy a home is to get pre-approved with a lender. Distressed properties for sale will not even look at your offer unless you are pre-approved with a loan or have a letter showing your assets if you pay cash. This is typically true too if you're going to put an offer on a traditional home for sale. With interest rates as low as they are, it makes complete sense to start your shopping now.
I can help you find your perfect home or investment from Topsail Island down south to Calabash North Carolina.
See you soon!