patrick.net
An Antidote to Corporate Media
1,259,007 comments by 15,027 users - Al_Sharpton_for_President, desertguy, KgK one, PeopleUnited, stfu online now
invite responseComments 1 - 1 of 1 Search these comments
1
everything
2012 Oct 5, 7:44am
everything
2012 Oct 5, 7:44am
I don't really believe in shadow inventory, to me shadow inventory is about the same as 2 empty bedrooms in a 3 bedroom occupied. A family members house was shadow inventory for 5 years and it was completely paid for. It was basically empty for 5 years until it finally sold to a borrower who purchased it through a bank. Now, it's as much shadow inventory as before being bank owned, yet a 3 bedroom with only one person living in it. We will always have shadow inventory, no way you can get away from it.
This particular house is a bankers and realtors paradise, just think of the commission and interest payments. A real gem.
When we were looking throughout the South Bay to buy, we checked out this house:
http://www.redfin.com/CA/Sunnyvale/477-Palo-Verde-Dr-94086/home/1071597
Back in 2009 or 2010, it was listed as a short sale for around $750k. It looked like total crap inside and out. It just sat there - wasn't occupied, wasn't listed, so clearly "shadow" inventory, until this listing. Well, as you can see from the listing someone prettied it up nicely and now it is listed at $948k. For those of you looking at housing objectively, particularly in the Bay Area, if you are waiting for a flood of shadow inventory, it may not come, or if it does, it may be priced higher than you expect.
#housing