Do you remember the Y2K fiasco? At the turn of the century computers were suppose to shut down causing massive power outages, meltdowns, dogs and cats living together :-) etc. Of course when the date finally came nothing much happened.
When the foreclosure crisis hit there were numerous stories about our shadow inventory. The results were going to be massive power outages, meltdowns and dogs and cats living together. :-) While we did have a lot of foreclosure properties, the market started its rebound and the dire predictions of the shadow inventory never came to pass.
What’s interesting is that we have a new shadow inventory. During the foreclosure crisis a number of investors flooded the market. Some of them had war chests in the 100’s of millions of dollars. Literally, 1000’s of properties were purchased. At that time, the decided to rent these units for a few years while the market improves.
Well it has been a few years AND the market has improved. So now these investors, with 1000’s of properties in Broward and Palm Beach County at some point are going to start selling them. When they do, realtors in some neighborhoods may find themselves competing against more listings than they bargained for.
While I don’t think this shadow inventory will cause dogs and cats to start living together an agent or homeowner should be aware if a significant percentage of homes in their neighborhood are owned by investors and the affect they might have on your property values should they decide to all start selling at the same time.
Gary Benson, EcoBroker, SFR
Author:Gary Benson Phone: 561-445-2331 Dated: March 31st 2017 Views: 89 About Gary: ...
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