Are the Foreclosures Playing Hide and Seek?
“House hunters looking for bargain properties in the new year
will probably be disappointed.” – Los Angeles Times
A new report by CoreLogic shows that shadow inventory fell 12.3%
from the year prior to stand at 2.6 million units nationwide. Split among 50 states that does not
constitute a large number.
The housing recovery that began last year was dominated by tight inventory and strong demand from cash
investors and buyers capitalizing on record interest rates.
Those factors have pushed up prices in recent months.
According to CoreLogic
analysts, the strong demand from investors means that the current shadow supply is unlikely to drag
down the market in 2013.
“The size of the shadow inventory continues to shrink from peak
levels in terms of numbers of units and the dollars they represent,” CoreLogic
Chief Executive Anand Nallathambi said in that release. “We expect a gradual
and progressive contraction in the shadow inventory in 2013 as investors
continue to snap up foreclosed and REO properties and the broader recovery in
housing market fundamentals takes hold.”
CoreLogic estimates the supply of homes that are seriously
delinquent, in foreclosure or held by lenders and not currently on the market.
In conclusion, the good news for buyers entering
the real estate market at this time is that their property value will increase
and they will soon have equity in their homes unlike property over the course
of the last few years in which their home lost value.