started tracking San Mateo’s shadow inventory in June. The numbers haven’t changed much. June was the high at 16. October was down to 2. November, 17. Although the numbers aren’t shocking I’m going to keep tracking until they – whoever that is – stops reporting that shadow inventory is going to sink the real estate market.
What is shadow inventory?
The whole idea of shadow inventory has been debated for months; does it exist or not? There were programs created to help home owners survive the real estate market bubble; unfortunately not all the effort has paid off. There’s the loan modification; some don’t qualify and some payments weren’t lowered enough. Or like HAMP many people don’t qualify. While frustrated home owners tried to make these things work for them it’s just delayed the inevitable: foreclosure. Since it’s taking up to 15 months to get the property through the process there’s now supposedly a backlog of houses that need to be sold: shadow inventory.
Back to the shadow numbers…
Four bank owned properties listed in San Mateo in December. June is still the year high with 16 REO homes listed for sale.
In December we were supposed to be hit with a ton of Real Estate Owned properties; before that it was the summer. They haven’t materialized here – yet. I’ll keep watching – at least for now.