Kenneth Bargers Blog

Shadow Inventory Unlikely to Hurt Market

Nearly 5 million houses and condos, of which the mortgages are delinquent, will go through foreclosure over the next few years, a new study by John Burns Real Estate Consulting Inc. concludes.

This represents more than half of the 7.7 million households now behind on their mortgage payments. The situation is worst in Arizona, California, Florida, and Nevada. Burns calculates that there is an inventory equivalent to 27 months of sales in Orlando, 24 months in Miami, and 18 months in Las Vegas.

Consulting firm CEO John Burns says there is strong investor demand for these properties, so as long as employment continues to recover and interest rates remain moderate, these sales won’t have much impact on overall prices.

Source: The Wall Street Journal, James R. Hagerty (02/16/2010)

February 17, 2010 - Posted by kbargers | economy, real estate | arizona, bargers solutions, Brentwood, california, employment recovery, florida, foreclosures, home buying, home selling, interest rates, investors, james hagerty, john burns, john burns real estate consulting, kenneth bargers, las vegas, miami, middle tennessee, mortgage, Nashville, nevada, orlando, prudential woodmont realty, realtor, shadow inventory, tennessee, wall street journal