For the last three weeks on the Mortgage Guys blog, we’ve been discussing shadow inventory and how it effects the housing market. Shadow inventory refers to the amount of unlisted bank-owned homes that are not yet on the market as well as homes in preforeclosure that are likely headed to a trustee sale and will become bank-owned themselves.
This week, we’ll discuss how new construction helps the outlook of the current real estate market. According to part three of the Wall Street Journal article, new home building has been as its lowest levels since World War II in 2009, 2010 and 2011. This has helped to offset the potential damage from elevated levels of foreclosed properties, because there are fewer new homes available on the market.
Additionally, according to the article, Census data shows the share of vacant homes for rent is down to the lowest level in 10 years, which has a vacancy rate of 8.6 percent. The vacancy rate of homes for sale is down to 2.1 percent, the lowest in six years. However, most financial advisers argue that new construction is still just relatively small amount of the overall housing inventory.
Hopefully, these three posts will help homeowners gain more insight into the housing market. If you have more questions or concerns, don’t hesitate to contact The Mortgage Guys in Atlanta, GA. We’re happy to sit down with you to discuss a variety of financing options that will suit your family best.
Part Two: Shadow Inventory: Part Two of Three