Shadows are Disappearing
As anyone with his finger on the pulse of the industry knows, homes are being bought. What’s taken S&P by surprise is that they’re being picked up faster than they expected. Basically at the end of the second quarter there were $405 billion worth of properties in the shadow inventory. Compare that to $384 billion at the end of the third quarter and you see things are moving faster than people originally thought.
Now don’t get too enthusiastic just yet. It’s still going to take 45 months to work through the homes currently up for sale assuming trends continue. And we all know how uncertain predictions can be. But it’s a good sign that the conservative estimates from the middle of the year undershot the pace of purchases by a good margin.
We all need to keep an eye on these trends. Real estate is built on image and confidence as much as it is on economics and finances. So take this news as a good sign and watch for improvements as we enter a recovery period. And keep doing what you’re doing as it seems to be working. Pound the pavement, work the leads you have, use the tips I’ve taught you in my courses, and you’ll be primed to cash in as the market rebounds.
