We have watched as the real estate inventory, in the Santa Clarita Valley, has shrunk down even more. The technical term having to do with the “shrinking down” is known as “absorption rate”. Here is the way in which it works. I’ll say we have 200 units(homes) being sold each month. We have 600 units on the market for sale – in three months – that inventory would be at zero. So the Absorption rate is 3 months in the preceding scenario. However, real estate markets are much more dynamic than that. There is inventory added on an almost daily basis, but you get the idea.
We have also seen that there have been several, media type, reports generated that are calling attention to the “shadow” inventory. Some propose that there are 2 million to 2.5 million homes, condo’s and town-homes (country wide) that are without “human owners”. Meaning they are, “unoccupied foreclosures“, and are ready to be introduced back into the “for sale” market right this minute.
Don’t forget when looking at these numbers, they seem huge, and they are! However, these numbers are reflective of the entire United States of America. Across all 50 states. Some States have more Foreclosure and Bank Owned inventory than others. That figure depends mostly on the amount of Sub-Prime lending that went on in the specific state, before the fall.
We have seen some of our communities holding firm, and even increasing, with their real estate values. When you look at the current home ownership models within these neighborhoods – you would see that the owners have been in place for a long time and that their homes are either paid off or they owe very little.
Get to our MacBOX resource and type in the word – price – . You can also get a grasp on the current foreclosure and bank owned inventory in the SCV by typing in the words – santa clarita foreclosures – . BE Safe and we will talk with you soon.