Joe Manausa at Tallahassee Real Estate, who writes an excellent blog on the market conditions of homes for sale in Tallahassee, Fl, includes in his predictions on housing market trends the additional factor, in the shadow inventory, of houses that were previously on the MLS but did not sell. The house that were not sold are the houses which the owners tried to sell, however, they did not succeed and they just surrendered in selling these houses.
However, Tallahassee has at least 2 years of house supply in the shadow inventory, based on the statistics and calculations of Joe Manausa, however, the supply would most likely reach 4 years if the potential houses will be added. As the relative supply is based on the demand for houses, as determined by actual sales, it is hard to predict accurately the relative supply 2 to 4 years out. However, the prediction of Joe Manausa would most likely become possible if market conditions and broad government interventions in the housing market will experience a big change.
Foreclosures & pre-foreclosures, and homes, condominiums and townhouses are the two factors that affect the shadow inventory. The Federal Reserve Bank of Atlanta has conducted a survey where it shows that both the number of houses over 90 days late in mortgage payments and the number of houses in foreclosure has increased over the 4 quarters of 2011.
Lessons Learned from Years with Homes
The Statistic of Federal Reserve Bank of Atlanta shows that the foreclosure in Leon county alone increased approximately 0.65% showing 2,860 houses, condos & townhomes to 3,220. The study of the Federal Reserve Bank of Atlanta also shows the 0.34% increase in the 90 days late mortgage payment, from 1,110 to 1,330. Soon, there will be an increase trend in the shadow inventory as soon as these houses will enter the market.
5 Key Takeaways on the Road to Dominating Properties
Almost half of the houses in 2011 were taken off from the market since they did not sell. Even though there are lots of houses that were re-listed, there are also which were not. In order for these houses to be listed again, they must wait for the increase in demand. Finding a buyer can also be tough, that’s why even though the homeowners want to sell the houses, they cannot do so because they can’t find a buyer. This oversupply has the effect of lowering overall housing values.
This drop in housing values heavily influences the level of demand of homes for sale in Tallahassee, Fl. Because the houses are cheaper to buy and interest rates are at low levels, it explains why most home buyers are home sellers before. Most home purchaser are those who want to change their lifestyle, they most likely want to have a better home with their family. Another factor for these home purchases are those people who wanted to transfer to a new neighborhood or a new environment. But before transferring, they have to sell their existing homes first.