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Miami Real Estate – Shadow Inventory

Shadow inventory is basically the number of properties that are projected to hit the market due to distressed owners, those who are behind 90 days or more on their mortgage,  or because they will be or already have been taken back by the bank.  There has been a lot of speculation lately about how this background inventory will affect the housing recovery, with many experts saying it will significantly delay it.

A article on Shadow Inventory states: “Of the 20 separate markets S&P analyzed, Miami was the only market of the 20 that S&P analyzed where shadow inventory did not did expand during the first three quarters of 2010.”

What does this mean for buyers?  Record high affordability and a wide selection of properties to choose from.

For sellers, it means a continued suppression of prices, with prices either dropping further or bouncing along the bottom for a while.  If you were thinking of selling your home within the next year or two, you may want to put it on the market now.  Or, if you have equity in your home and have entertained the idea of owning investment property, turn it into a rental and buy your move-up, downsizing, or retirement home at the lowest prices we have seen in a long time.