I am always trying to stay on top of the national real estate news, and right now the big subject of topic is with Foreclosures and “Shadow Inventory.” Shadow inventory is essentially default homes that will eventually foreclose. Many national economists and housing experts are predicting that the foreclosure problem is only going to get worse. Many banks have held back on releasing foreclosure properties to the real estate market. When these foreclosures do start flooding the market as additional, undervalued properties, US home prices will continue to decline.
Nationally, around 30% of all home sales are distressed short sales or foreclosed properties right now. About 6% of the total housing market is “distressed.”Since 2006, national home values have declined by 30%, and according to Barclay’s, are likely to decline an additional 3-5% over the next few years.
Living, and practicing real estate in Logan Utah is really good news. Our short sale, distressed and foreclosure numbers are nowhere near the national averages. Our average home values have remained fairly stable.
Currently less than 6% of the homes for Sale in Cache Valley are short sales. Short sale properties make up a good portion of the future “shadow inventory”. If the short sales sell, they will never actually become foreclosures. Less than 2% of the homes for sale in Cache County are Foreclosures. According to Foreclosure.com, there are just 26 “preforeclosure” or default properties in the Logan area right now.
Unless things drastically change, increased foreclosure rate and “shadow inventory” shouldn’t really make much of an impact on the Logan Utah Real Estate market.