Hello you wonderful people! Happy New Year! It is the year of the Rabbit!
Tom Las Vegas is back with some breaking news about Nevada’s foreclosure market. Looks like we may be in for a flood of foreclosure inventory in the coming months.
If you have been following my postings for any time, you know that I have strongly believed there is lots of SHADOW INVENTORY out there. As of January 2011, (our most recent statiscics, Las Vegas has a backlog of 33 months for our SHADOW INVENTORY. This compares favorably with the national average of 49 months. Below is an interesting article fron Inman News
It may take more than four years to clear the “shadow inventory” of distressed homes lurking on the sidelines in the U.S., a factor that’s likely to undermine real estate prices as the backlog clears, analysts at Standard & Poor’s Ratings Services say.
At 49 months, the estimated time needed to clear shadow inventory at the end of the fourth quarter of 2010 was up 11 percent from the previous quarter and 40 percent from a year ago. With the lone exception of Miami, the months’ supply of shadow inventory grew in almost all of the nation’s 20 largest metro markets.
But much of the increase in the estimated months needed to clear shadow inventory is due to the fact that it’s taking longer for lenders to liquidate distressed homes — not because the number of distressed properties is growing, analysts said.
Standard & Poor’s defines shadow inventory as properties with borrowers who are 90 days or more delinquent on their mortgage payments, properties currently or recently in foreclosure, or properties that are real estate owned (REOs).
Although shadow inventory peaked in the first quarter of 2008, loans that are 90-plus-days delinquent and foreclosed properties are taking longer to become REOs. That’s once again lengthening the overall timeline for resolving troubled assets, Standard & Poor’s analysts said. . (Inman News)
The property Lover
Tags: Las Vegas foreclosures, Las Vegas home sales, Las Vegas house values, Las Vegas Real estate, Las Vegas Realestate
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