I had posted this comment on the April Foreclosure Data thread, but it seemed appropriate here. I have suspected the “shadow” REO inventory for some time, based on a lot of driving around neighborhoods of interest and way too much time looking at the MLS.
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I’ve been wondering where all the bank owned inventory is. If I go to http://www.realtytrac.com and put in the zip codes for some of the harder hit areas, there seems to be more bank owned properties out there than total inventory listed on the MLS. Anyone else notice this? Take a look at Spring Valley or Encanto. This assumed “hidden” inventory is the primary reason I think the better deals are still a ways off.
I have also noticed while driving around that there are a lot of bank owned properties not listed on the MLS. I take that to mean banks are trying to disguise the true number of foreclosures. It could also mean the banks are quick to put up a sign, but slow to list on the MLS.
