We’re going to define ‘shadow inventory’ as anything on our list from foreclosure radar, which includes NODs, NOTSs, and REOs. There will probably be some homeowners who will find a way to cure their default, but there are probably just as many coming right behind them that haven’t made the list yet, so we’ll call it even.
Our new hire Richard Morgan compiled and sorted these, as he is becoming ‘at one’ with the foreclosure list, and bringing additonal product for our buyers’ consideration. I did some spot checks, and they look accurate. These are detached-only.
Consider the actual number of shadows, and how they relate (%) to current MLS inventory:
|Town or Area||Zip Code||FRadar||FR In MLS||Net ‘Shadow’||MLS Act||% Inventory Incr.|
|SD DT condos||92101|
It appears that the higher-end areas don’t have that many foreclosures in the works, compared to active inventory. But you can contribute it more to that fact that their MLS inventories are sky-high, and nothing is selling, and/or folks in the tonier parts of town have more money/credit cards and are able to hold out.
Buyers for SE Carlsbad and Encinitas (92009 & 92024) should be elated to see a possible 100+ bank-owned houses coming to their inventories before long – hopefully!
We included La Mesa and Santee for our good friend lgs, but interesting to note how a couple of relatively blue-collar towns are faring. Will the same result trickle over to the coast?