If you have been keeping an eye on the Norwalk, CT / Fairfield County real estate maket in the past few years you have likely learned a lot of new real estate terms. Consider this education necessary to buy and sell properties for the next 5-10 years.
Some of these terms were hardly used before 2005, terms like: shadow inventory, short sale, cash for keys, judicial foreclosure, etc. Now they are commonplace. Whether you are a buyer or a seller, being familiar with the changes happening in todays market and the terms used to describe a property is important.
A recent article from DSnews.com reports that it will take 46 months to clear the nations shadow inventory (supply of distressed homes). The New York City Metro Area (which Norwalk is a part of) has the highest number of months to clear the shadow inventory at 202. Let’s do some simple math, 202 / 12 months per year = 16.83 years. This means that at our current rate, it will take nearly 17 years to go through the shadow inventory in our part of the country. There are multiple factors that determine price and overall market health (interest rates, tax incentives, etc) but the shadow inventory will play a large part in determining price.
If you are a seller, you might think that it will help if you wait for the foreclosure down the street to sell your property. That property might sell in 1-6 months or so and you will feel better about listing your home for sale. This isn’t a completely irrational strategy. Now imagine that you get a report that says that your neighborhood can expect foreclosures for the next 17 years! While not all of these properties will be on your street, some of them will likely be within a mile radius of your home and will impact your value.
To read the entire article from DSnews.com, CLICK HERE.
Feel free to visit www.ToddTurcotte.com or contact Todd with questions about Norwalk, CT / Fairfield County real estate.