Shadow inventory and how it will affect the St. George market.

Many buyers and sellers are wondering about the shadow inventory and how it will affect the local market.  Shadow inventory for those of you who don’t know what it is, is inventory that is hiding in the shadows.  It is inventory that is bank owned currently and not on the market, homes that are in foreclosure and not yet bank owned and homes who’s mortgages are in default and could be in foreclosure with in the next 90 days.  So you will better understand, in Utah when a home owner becomes delinquent on his/her mortgage the bank files a notice of default on the home.  The home owner has 90 days to make the note whole again or bring the note current.  After 90 days the bank can start the foreclosure process which usually takes another 30 to 90 days.   During the process the seller can still make the note whole or work with the bank to try and modify the loan.  The shadow inventory in Utah is about 1.6 % of existing homes.  That is a very small number in comparison to the homes being sold each month in our local market.  Notices of default are down to about 50 a month on average over the past few months.  The were over 300 a month at the peak.  Most foreclosures that are priced aggressively have multiple offers on them and unfortunately only one of them gets the house.  There are also a lot of investors purchasing homes to take advantage of the low prices and interest rates.  This activity in the current market will allow the shadow inventory to come to the market without much of an impact on those trying to sell their homes.  For those trying to buy homes it will me that there will still be a lot of competition for homes priced under $250,000.  Don’t get discouraged, be patient and persistent and you will be able to find the home for you.  If you get with a good agent that can put you on a drip email campaign to send you new listings as soon as they hit the market this will increase your odds of getting the home you want before the market goes crazy.  You can also find all the homes in Washington County on my website: www.southernutahhousefinder.com.  I hope this helps you to understand what is going on in the market and what is to come.

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