As Time Passes, Shadow Inventory will be Sold off to Baby Boomers

Dear Readers,

So far, we have been very busy in 2011. Home prices have pretty much stabilized and have even gone up in some parts of the Las Vegas Valley. You can read more about this phenomenon in an article written by Hubble Smith in the Las Vegas Review Journal entitled:

Parts of the Las Vegas Valley see Home Prices Improve in 2010

So here is my Shadow Inventory Story and I'm sticking to it!

Many are under the impression that we are going to get multitude of homes in the Las Vegas Valley dumped onto the market that fall under the Shadow Inventory category, causing the market to go lower. Not true! Most are under the impression, that this inventory is defined by lenders (Banks and Loan Servicing Companies) that are holding onto foreclosures and not putting them on the market until there is a turn-around. This is not totally true!

Banks and Loan Servicing Companies tend to get these sellable properties off their books as quickly as possible to maintain an acceptable balance sheet. There are other factors that may cause lenders to have to hang onto foreclosed properties such as title issues, illegal sales, loan origination problems, renter conflicts, trashed and destroyed homes. These are issues that make the home unsellable until they are dealt with by the seller.

A good share of the Shadow Inventory that exists out there today is owned by groups of investors who purchased a bulk quantity of sellable homes from a lender because there were so many that came so fast, the lender needed to liquidate them and get the cash. Today, many of these homes have been or are in the process of being cleaned up for resale or rented out to, you guessed it, people who have been foreclosed on or people that have historically lived in apartments. That is a huge market today! As a general rule, these investor groups know that the Return on Investment will be slow, but based on what the low bulk price they purchased these homes for, they should be able to collect enough rent to get them to cash flow for a few years and the demand goes up.

So where is the demand going to come from?? A Theory!

Beginning on January 1^st of this year, 10,000 Baby Boomers per day started retiring in the United States. That will continue for the next 19 years. Many of the homes I have sold, so far, this year have been to Baby Boomers and they are paying cash. You may ask! Why Las Vegas? Most popular answer: LOW Taxes and LOW Home prices. And so the cycle starts again.

Top 5 Informational Links that I think you should know about:

• Baby Boomer Buyers Influence Housing Market
• Cash buyers dominate Las Vegas housing market
• The Medical Experts are Finally Catching Up With Me!
• My New Video Introduction to Summerlin in Las Vegas
• Download My New 100+ Page Las Vegas Relocation Guide

I have more Resource Links below for your reading pleasure!

Make it a GREAT Week!