FORECLOSURES: OUT OF THE SHADOWS!

According to Dr. Lawrence Yun, the chief economist for the National Association of Realtors, “shadow inventory” is down significantly.  Shadow inventory is composed of properties that are likely to come on the market soon due to serious mortgage delinquency or foreclosure.  A few years ago the number of homes in the shadows was 10% but now stands at 4.5%.  In terms of foreclosure starts, the latest figure of 0.46 is essentially back to normal. 

 Santa Barbara as always is a unique market.  While we had significantly more foreclosures and short sales than normal, those numbers didn’t come close to other parts of the state including North Santa Barbara County.  Still, it’s nice to be returning to “normal” and while there might not be as many distressed properties on the market, the values are stronger and more lasting.