I had an interesting conversation today with my realtor in regards to homes marked TNAS (temporarily not available for show) and the real number of foreclosures really out there.
I see things for what they are and if someone asks me why I will explain to them WHY! There are tremendous amounts of bank owned homes saturating the market in eveyones neighborhood, I do not care what state you are in.
It is simple economics and psychology, if the general public really knew the numbers and the media told the truth, people would panic.
So instead of my own thoughts I have compiled a few brief statements from chief economist at Wells Fargo Securities, Zillow and Deutch Bank. Please read below
Housing inventory drops in July from a month earlier! Wow the market is recovering (Ha hahahahahah)
According to data compiled by ZipRealty, inventory of homes -- single-family homes, condominiums and town houses listed on local multiple-listing services -- in 28 major metropolitan areas dropped 2.5% in July from a month earlier. The inventory in July dropped 27% year-over-year.
The figures compiled by ZipRealty may not present the exact level of supply since half of foreclosed homes are not included on multiple-listing services at any given time on account of such homes awaiting repairs or being subject to litigation. Analysts say that the housing market is showing signs of stabilization, but a large supply of unsold homes could hit market recovery.
"The number of homes listed officially on the market, while still at historically high levels, might be only the tip of the iceberg," said Stan Humphries, chief economist at Zillow.com.
Adam York, economist at Wells Fargo Securities, says that the number of homes that have not been listed for sale could be around 5 million. "That is still an extremely high number," said York. "Supply is and will continue to be one of the main obstacles to a housing market recovery in the year ahead."
Torsten Slok, senior economist at Deutsche Bank, says that foreclosures are creating a "shadow" inventory and "had it not been for foreclosures then the housing market would probably have recovered."