What is Miami’s “Shadow Inventory”
August 3, 2011The shadow inventory for Miami is
441,461 properties which accounts for
roughly 15.9% of the total shadow inventory
for the United States. This represents 28.8
months of supply assuming that the shadow
inventory sells at roughly the current rate of
sales for foreclosed homes.
A concern of many in the real estate field is
the amount of inventory that banks have on
their books, but have not yet released to the
market. This shadow inventory consists of
homes near default or already in bank
possession, but not listed for sale.
A large influx of inventory from this shadow
population would place downward pressure
on home prices. Bank representatives state
that they are not holding back inventory.
Statistical evidence suggests that
foreclosures are often priced well below
comparable non-distressed properties and
move quickly after entering the market as a
result.
For more information on how the shadow inventory was
calculated, see the article “State by State
Estimate of Shadow Inventory” by Economist
Selma Hepp of NAR Research at
http://economistsoutlook.blogs.realtor.org
