What is Shadow Inventory?

Shadow Inventory is a real estate term that refers to properties that are in foreclosure and therefore are not able to sell at the moment, or property that owners wish to sale but they are waiting to put on the market until prices improve. Real estate professionals feel that shadow inventory is a negative for the industry—mainly because it creates uncertainty, but also because it causes reported data to understate the number of houses that are actually available for sale.

Shadow inventory makes it difficult for agents to advise their customers on the best time to sell and makes it harder for experts to evaluate the current local market. As of winter 2012-2013, shadow inventory is showing a decline. In many parts of the country, including in and around Lafayette CA, this points to a gradual recovery on the California real estate market that has been depressed for the past five years or so.

For more information on the subject, or to find out what is happening as it specifically relates to your real estate needs, contact Cary Amo, your Lafayette agent, today!

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