Where is the Shadow Inventory? Right here

Zillow now publishes all pre foreclosures on site

With the current Fed made housing market of artificially low rates, artificially restrained inventory which is fueling mini housing booms in local areas,many have wondered what has ever happened to that past myth of Shadow Inventory that to some is either real or imagined

Zillow has taken a step in the right directon. One of the first companies to provide click “zestimates” of  individual property values for the country, has now rolled out a feature showing pre-foreclosure info for homes NOT YET ON THE MARKET -but in some stage of the foreclosure process at least a NOD was filed.

NOW IMAGINE IF BANKS AND LENDERS WERE ACTUALLY FILING NOD’S ON THE 90+ DAY DELINQUENT BORROWERS? WE WOULD HAVE THESE PRE-FORECLOSURE NUMBERS X 3!

Lets take a look at some of the popular areas in North Coastal San Diego County- the “meat and potato” suburban areas : Carlsbad, Carmel Valley and Encinitas.

Carlsbad

# Avail in MLS # Pending/contingent #Pre-foreclosures

182                                              247                                   459

Carmel Valley

# Avail in MLS # Pending/contingent #Pre-foreclosures

93                                        120                                         117

Encinitas

# Avail in MLS # Pending/contingent #Pre-foreclosures

139                                      117                                            183

Wouldnt you think the banks would start to release some of this inventory and speed up the foreclosure process.  The demand seems fairly strong and a lot of this “shadow inventory” would certainly be swallowed up by hungry home buyers.   With that said; with interest rates basically negative and sold $/sqft steady or slightly lower– why isnt there an even greater; more epic frenzy ?

A pause for thought…..

Leave a Reply

Your email address will not be published. Required fields are marked *