Is There a Shadow Inventory Waiting In The Gilbert Real Estate Market?

Shadow Inventory Waiting In The Gilbert Real Estate Market?

Gilbert Arizona Shadow Inventory

Recently, I attended a Real Estate Summit about what’s ahead for the Gilbert real estate market and the rest of the valley.  One of the more accomplished speakers at the event was Michael Orr publisher of the Cromford Report and ASU Real Estate Analyst. Senior Vice Presidents from both Wells Fargo and Chase were also on hand to give their take on what the banks are planning and to answer questions.

I’d like to share a few points discussed at the event that I think are important to Gilbert home buyers and sellers. One of the more interesting topics was about whether or not there is a so called “shadow inventory” that we’ve been hearing about for years. Many people have heard that the banks are sitting on foreclosed properties and could at some point flood the market with them causing even more problems for our Gilbert real estate market.  This has caused a lot of uncertainty for Gilbert home buyers wondering if a better deal could be had down the road. According to event speaker Michael Orr that is just not true. Although he says the banks do have some properties being held back in their inventory, it is nowhere near enough to cause any disruption in the current market.  His feeling was that even if the banks released every single property they had in their inventory, we would still have a shortage of properties on the current market.  The representatives from the banks also concurred with Mr. Orr’s statistical data.

Shortage of  Gilbert homes

The shortage of  Gilbert homes on the market that we are currently dealing with is expected to continue at least through the spring if not longer. Pricing hasn’t been greatly affected up to this point but the longer the shortage of inventory continues the greater chance of future price increases.  Interest rates and home prices are still great and there may not be a better time to get out there and find your Gilbert dream home.

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