There was a rather disturbing article in Sunday’s Charlotte Observer: Housing glut looms behind region’s ‘shadow inventory’. It is not the whole issue of shadow inventory that is disturbing but rather the tone of the article, starting with the ominous title itself. Home buyers are already extraordinarily nervous, why add relatively useless fuel to this fire?
Before I go any further, I need to address the definition of shadow inventory which is widely disputed: The Shadow Inventory Debate. For the sake of this article, I am defining shadow inventory as any home where there is a delinquent mortgage and has not been foreclosed upon by the lien holder. While most of these are not listed for sale and may not be for years, some homes currently on the market in Lake Norman have been in the foreclosure process for several years but the sellers have been preemptive and have listed their homes as distressed.
If you are a regular reader you know two things about this blog, I love analyzing and interpreting the very specific numbers and data for Lake Norman’s housing market and I work hard to separate our local market from the broad brush media headlines about real estate.
While you might think that the Charlotte Observer’s article is specific enough to be applicable to our Lake Norman housing market, it simply isn’t and here is why: Continue reading