In my zip code I have noticed a shift in recent weeks, I think the shadow inventory is starting to show up. Albeit, I am at ground zero so it’s difficult to compare areas, but many times what I see here, shows up soon after in other areas. The bank owned homes are starting to list at the rate of a 4 or 5 a day as opposed to 4 or 5 a week. The ones nearby that I have followed that were vacant for a long time have just listed. Overall inventory is flat from last month and at a 5 year low, list prices are flat over the last 6 months, no more chunks down but they are coming on the market at a higher rate, selling, and more coming on, I think the bidding wars may end soon.
Maybe the banks are doing it on purpose or maybe they just ramped up the staff to process it. Personally I think that the banks realized rates were low, people were buying and they might as well clear the stuff out, it just took them 2 months to get the ball rolling, the fall/winter may be a much better scenario for a buyer if this trend holds up, then again, the fall/winter usually is anyway.
