Down 16% from last year….
How often have you heard that the real estate market is going to continue it's downward spiral due to the shadow inventory that will be dumped on the market? I've been hearing it for over 5 years now and it has yet to materialize. The end of last month an article came out stating that the shadow inventory is down 16% from the previous year on the national level. How did that happen?
Last year we saw an increase in the approval of short sales that helped move homes out of the foreclosure process, an increase in the number of REO's (real estate owned by the bank) being sold in a timely manner, and an increase in the number of loan modifications granted. All of this has helped decrease the shadow inventory without causing a panic in our economy due to excessive price decreases.
Encinitas real estate market has a smaller shadow inventory due to it's location….. as does many other coastal areas of the greater San Diego area. Yet, there are deals to be had along the coast that buyers need to take advantage of today. At this time, only 17% of the Encinitas homes for sale are short sale listings and only 7% are REO's in Encinitas.
If you would like to know information on the real estate market in your neighborhood, please contact me.