A question we hear every day – “What about the shadow inventory? How are housing prices affected?” with lots of talk about the foreclosure pipeline in judicial states like Florida. (For the uninitiated, “judicial state” means that foreclosure proceedings go through the court system, which considerably slows the clearing the distressed housing market.)
Here’s the very complex answer: Inventory up, prices down.
Check out Tampa (black line in both charts) in particular —
Also found it interesting that Fort Myers has slightly fewer homes for sale vs. this time last year, and the new listings hitting the market each week are priced above last year’s sellers…