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Gold Regular Contributor
sheriff
Posts: 2,343
Registered: ‎06-01-2012
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The shadow inventory

The is a story in the real estate section of the Saturday SJ Mercury News containing predictions for the new year.  Most are positive, no surprise there, but the part that was most interesting to me was the number of people who talked about foreclosures being bought up in bulk up by hedge funds before they hit the market.  Maybe this is where the shadow inventory went and where it is going in some parts of the country.  I doubt that they are buying much in the bay area because of the expense but I don't know.  I am sorry for not providing the link but I was not able to find it.

Gold Super Contributor
Jil
Posts: 3,136
Registered: ‎10-24-2011
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Re: The shadow inventory

[ Edited ]

I read the whole story. All these are good for those who bought last 3 to 4 years, but not for new buyers.

 

Now, It is no brainer to say "2013 is positive" when everyone in the valley knows the secret. Economists, analysts......all those real estate related people coming out now are very late gamers.

 

When foreclosures and short sales are gone, all the low prices are gone. Even if there is a economic fall in future, those 2008-2012 prices will not be back.

 

 

 

Gold Regular Contributor
sheriff
Posts: 2,343
Registered: ‎06-01-2012
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Re: The shadow inventory

[ Edited ]

I found the link to the article.  Apparently it does not show up on the website right away.

 

http://www.mercurynews.com/real-estate/ci_22287721/market-predictions-2013-from-our-trusted-prognost...

Super Contributor
donjumpsuit
Posts: 245
Registered: ‎08-07-2012
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Re: The shadow inventory

I'll wait for the "Hedge Funds" to go bankrupt or Ponzi, and then collect thier assets when they are liquidated on the market.  Until then, they can buy all the overpriced proprties they want.  

Gold Super Contributor
Jil
Posts: 3,136
Registered: ‎10-24-2011
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Re: The shadow inventory

Gold Regular Contributor
sheriff
Posts: 2,343
Registered: ‎06-01-2012

Re: The shadow inventory

[ Edited ]

 


donjumpsuit wrote:

I'll wait for the "Hedge Funds" to go bankrupt or Ponzi, and then collect thier assets when they are liquidated on the market.  Until then, they can buy all the overpriced proprties they want.  

 


I doubt that they are buying overpriced properties.  If anything they are getting a discount from buying large groups of properties and saving the banks marketing and selling expenses and the asset manager's time.

Super Contributor
BAzx
Posts: 243
Registered: ‎07-08-2012
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Re: The shadow inventory


sheriff wrote:

I doubt that they are buying overpriced properties.  If anything they are getting a discount from buying large groups of properties and saving the banks marketing and selling expenses and the asset manager's time.


The classic economy of scale - that's why small time investors/individuals will always get the short end of the deal during these times... 

Platinum Super Contributor
buyinghouse
Posts: 5,879
Registered: ‎04-23-2011
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Re: The shadow inventory

  Everybody but the latest buyers got a chance to overcome that, it was hard for us to compete with investors but we did it using other avenues. nowadays, with the lower inventory, it multiplies the "cash is the king" mantra ten times fold.