A GREAT TIME TO INVEST IN REAL ESTATE LEX LEVINRAD
No one knows exactly how
much shadow inventory there is,
but there is no doubt that there
is a lot of shadow inventory out
there. I have heard real estate
listing
agents
and
asset
manager’s talk about shadow
inventory
since
2010,
when
more than 1 million homes were
taken back by lenders through
foreclosure. In the State of
Florida
alone,
there
were
377,000 foreclosure cases still
pending, as of October 31, 2012. And according
If you read the mainstream media, the forecast for
to the Florida State Court Administrator, there will
real estate seems bleak. This is especially the
be another 165,000 foreclosure filings for the
case in hard hit states like California, Florida,
period 2012 to 2013. That is a whopping half a
Arizona, Nevada, Illinois, Ohio, Michigan and New
million homes that are either in foreclosure or will
York. All of this bad news in the media gives the
be over the next year just in the State of Florida.
average reader the impression that now is not a
great time to be buying real estate. After all, why
According to the February 2013 Foreclosure
would you invest in real estate if there is so much
Trends
negative news?
by
RealtyTrac,
a
California-based
company that tracks foreclosures, there are
approximately 1.5 million homes in foreclosure in
Negative news has a negative effect on buyers,
the
307,000
forcing them to sit on the sidelines while they wait
California
for better news. Adding to the negative news is the
(152,000), Illinois (137,000), Ohio (82,000), New
fact that over the past few years it has been very
York
(51,000).
difficult for home buyers to get approved for a
According to RealtyTrac, in February 2013, there
mortgage. This is yet another reason why potential
were approximately 31,700 foreclosure filings in
home buyers might sit on the side lines and wait
the State of Florida. This means that 1 in every
for the situation to improve.
United
foreclosure
States.
homes
(71,000)
and
Florida
followed
New
has
by
Jersey
282 homes in Florida received a foreclosure filing
in February 2013. In the same month, California
Real estate investors like myself that are actively
had over 18,000 foreclosure filings followed by
involved in buying and selling bank owned
Illinois (12,600), and Ohio (10,500). There may be
properties on a daily basis see an entirely different
another 600,000 homes that will be taken back by
picture to the one that the media portrays. What I
the banks through foreclosure.
see on the ground on a daily basis is that there a ?B??