Learn About Shadow Inventory Homes & How These Properties May Affect The Miami Real Estate Market
By definition, the term shadow inventory refers to properties which include homes that are under foreclosure which have not yet been sold on the market as well as homes that have strategically been kept off the market by their owners in the hopes that the local market conditions will improve over time in order to get the most for their property.
Clearly these home properties that fall under the shadow inventory have become quite an obstacle in terms of being able to determine whether the market has truly reached the point of recovery. Furthermore, the actual statistics with which real estate experts are able to generate their assumptions from become loose since these home properties under the shadow inventory will prevent them from really being able to know the real numbers that they need to work with in order to generate accurate figures.
In the case of home properties that fall under the shadow inventory of the local real estate market, it is likely that banks and lenders will not be placing these properties on the Miami real estate market until they can guarantee that they will be getting their due payments back in the right amounts. And even in the event that they do place these foreclosure properties for sale on the market, there is still the possibility that it would create a further decline in the home values for the other properties.
However, many believe that banks and lenders will be working their best efforts to avoid causing any further delays in the full recovery of the Miami real estate market, especially since a large portion of their earnings do come from the local real estate market.
At the end of the day, the Miami real estate market will remain active despite any of the on-going issues at hand. Whether these shadow inventory properties will end up causing delays in the local market’s recovery is something that people have yet to find out. But, as early as now, people can be rest-assured that there will always be activity within the Miami region for the simple fact that real estate properties in the region are set within one of the most outstanding locations in the United States.
Joan Vonnegut
Miami Real Estate