BRADENTON -- Foreclosures have increased across the region, but many houses are not being released into the market because of overburdened court dockets. As a result, home prices may rise temporarily because of the declining inventory of foreclosable homes tied up in the court system.
The houses trapped somewhere between foreclosure and "on the market" are called the shadow inventory and may provide area sellers with a small window of welcome relief. Shadow inventory can make comparisons difficult in a local market. A report released by the Re/Max Alliance Group predicts possible price increases moving into the new year because of a declining supply that has resulted.
The report shows inventory is down in all local areas covered. From December 2010 to Dec 2011, Longboat Key saw a 17.3 percent decline in available inventory. Bradenton saw a whopping 30.8 percent decline in the same period according to the report.
While inventory is down, sales were up in all areas (with the exception of Lakewood Ranch) from November to December of 2011. The group also reported that 2011 ended with a substantial increase in pending sales, suggesting a promising beginning to 2012 in the local real estate world.
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