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Old 03-28-2013, 12:11 PM
 
192 posts, read 471,570 times
Reputation: 97

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that we waited too long to buy in the Sarasota area.

Certain circumstances forced us to put our Sarasota home search, which we started in 2009, on hold for a bit. We're just getting back to looking again, and I was at first worried that prices were going up and inventory was going down.

In my absence, not being on top of the FL real estate market, I wondered what happened to all of the foreclosures that were looming when I was last down there in 2011.

Lo and behold! I was relieved to see this article today:

'Shadow inventory' is growing | HeraldTribune.com

So, even though prices have gone up and inventory has gone down, I see that there's no worry that the prices will get out of hand (and out of reach) any time soon!

Looking forward to coming down to Sarasota again!
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Old 03-28-2013, 12:35 PM
 
Location: Lakewood Ranch, FL
5,643 posts, read 9,635,618 times
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I've been hearing grave warnings over shadow inventory for YEARS and it has yet to be a big deal. I think you are right that you don't need to worry about prices going nuts any time soon but I wouldn't be too sure that the foreclosures will hold prices down. The banks are not giving these places away and prices are going up. The only value priced foreclosures I see are the ones with big time repairs needed.
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Old 03-28-2013, 01:58 PM
 
16,300 posts, read 34,993,470 times
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Quote:
Originally Posted by bbronston View Post
I've been hearing grave warnings over shadow inventory for YEARS and it has yet to be a big deal. I think you are right that you don't need to worry about prices going nuts any time soon but I wouldn't be too sure that the foreclosures will hold prices down. The banks are not giving these places away and prices are going up. The only value priced foreclosures I see are the ones with big time repairs needed.
Plus the other thing is those big corporations are now buying up the foreclosures in huge blocks and paying over market for them. So I think the low, low prices are a thing of the past except for as you say, the ones that need huge repairs or are in undesirable neighborhoods. Agree, prices should stay fairly stable, I don't see any huge bubbles happening or anything.
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Old 03-28-2013, 02:16 PM
 
Location: North Port
697 posts, read 1,065,722 times
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Yup..if you look at the latest stats..median homeprices in Sarasota up over 12% & North Port over 23%....this area is moving up
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Old 03-29-2013, 09:29 AM
 
Location: Port Charlotte, FL
3,979 posts, read 9,591,158 times
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Yes, home prices have been going up and bank foreclosures as well as short sales are selling comparable to normal sales. The banks are pricing them at what they are worth and not giving them away. The below market value homes are fixer uppers. Basically the same as what bbronston said. I have not been seeing a lot of foreclosures hit the market. They dribble in here and there and are listed in the MLS.
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Old 03-29-2013, 10:21 AM
 
Location: Sarasota, FL
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I am not hearing anyone refute the notion of a shadow inventory.

Someone please tell me there is not a tsunami of stuff about to destroy our home values.
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Old 03-29-2013, 01:03 PM
 
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We bought July of 2012 and prices that homes have closed at in our area are up significantly. We bought to be here for a long time. I think the most affected will be at the low end & high ends.
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Old 03-29-2013, 03:06 PM
 
Location: Lakewood Ranch, FL
5,643 posts, read 9,635,618 times
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Quote:
Originally Posted by Rushmore View Post
I am not hearing anyone refute the notion of a shadow inventory.

Someone please tell me there is not a tsunami of stuff about to destroy our home values.
I'm hardly an economist so take this for what it is worth...shadow inventory simply refers to inventory that is likely to come on the market at some point because eventually the banks will do what they should have done a long time ago--go to court and exercise their right to take back the properties and sell them. Well, in my humble opinion, the fact that the banks are not doing what they should do means that, in essence, all of these pre-foreclosure properties are only ever-so-slightly more likely to be listed in inventory than every other house in America. In that sense, the shadow inventory has about the same influence on the market as those properties that are not in pre-foreclosure. The banks haven't been in a hurry to foreclose because they wanted the values to go up (and they are going up) so why wait as long as they have for the market to go up only to turn around and flood the market thus driving the prices down? I don't see that happening but then, what do I know?
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Old 03-29-2013, 06:05 PM
 
Location: North Port, FL
137 posts, read 300,266 times
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nobody has a crystal ball to predict the future but I tend to think that the banks learned some lessons from when they flooded the market and drove prices down so there may be a shadow inventory out there but I think they'll release them in a slow trickle so as not to flood the market and shoot themselves in their own foot. I wrote some statistical analysis articles for the Sarasota Herald Tribune - Inside Real Estate section (you can also see them on my blog) which really details the small gap, as others have noted on here, between prices for foreclosures and traditional sales. And the foreclosures that are priced really low, need a lot of work, so by the time you price in all the work needed you'd wind up spending about what a home that didn't need that kind of work in the first place. For now, the only real bargains out there are the short sales and these are fine to pursue provided you have the patience to wait out what could be a long process, and mentally prepared for the deal not going through. Since the gap in price between foreclosures and traditional sales is so narrow, I try to inform people about the benefits of a traditional sale, where you can get a seller's disclosure as well as talk to the seller about the house and what's been done, versus buying a great unknown when you buy a foreclosure from a bank.
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Old 03-29-2013, 06:43 PM
 
288 posts, read 413,821 times
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Wouldn't it be risky for the banks to just let homes sit empty during humid season? Mold etc. comes to my mind. Remediation of mold is more costly (and the stigmatized property) than the benefit of holding on, no?
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