May 31 2015 7536 1Shrinking Shadow Inventory Raises Prices In Naples And Elsewhere

May 31 2015 7536 1Shrinking Shadow Inventory Raises Prices In Naples And Elsewhere

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As I've written in previous blogs, home values have continued to appreciate during 2015 and look to continue upward. Part of the reason is that the number of existing mortgaged properties that are "under-water" continues to steadily decrease, making the availability of steals and deals fewer and farther between.........let me share some data with you:

The U.S. shadow inventory – properties with a serious mortgage delinquency or in some stage of the foreclosure process – has been in a steady decline and now makes up just 4.5 percent of all mortgages. A few years ago, it was 10 percent, according to National Association of Realtors® data.

In addition, many foreclosure homes are well into the process. In a look at foreclosure starts, the figure is 0.46 percent – which is essentially back to normal, NAR says.

"Due to the thinning out of the shadow as well as from rising home values, the share of distressed property sales is now hitting the single-digit percentage," writes Lawrence Yun, NAR's chief economist. "This means home prices will strengthen (since there will be fewer deeply discounted properties)."

Yun says it also means that "those practitioners who specialize in foreclosures or short-sales need to start thinking about a change in business models to normal home buyers and normal positive-equity home sellers."

However, some states that still have a large shadow inventory – like New Jersey and New York – can expect home prices to rise more slowly due to the number of foreclosures that will still enter the market.

Despite these facts, there are still good values in Naples and surrounding areas and I will be happy to share my knowledge and experience in the market to help you find and purchase your next property. Call me at 239-273-4006 or email me at [email protected]NaplesNow.com. Please take the time and visit my website at fay.movetonaplesnow.com where you can also learn about my Special Fly and Buy Travel Incentive Program. Fay Mlinarich, PA., Premiere Plus Realty.


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Phone: 239-273-4006
Dated: May 31st 2015
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