Wednesday, May 25 , 2016, 7:53 pm | Fair 66º




Ed Fuller: Can Shadow Inventory Alleviate the Shortage of Homes for Sale?

By Ed Fuller |

Ed Fuller
Ed Fuller

National Association of Realtors chief economist Lawrence Yun points out in a recent article that home price increases over the past two years have reduced the number of underwater homeowners (the value is less than their loan balances) in half, but there are still about 6 million homes at risk of default. About 2.3 million of these are already seriously delinquent or in foreclosure.

In California, the reduction in seriously delinquent mortgages has been dramatically reduced, from a rate of 12.5 percent at the peak to 3.6 percent now.

Last year, of the 1,210 single-family homes that sold in the metropolitan Santa Barbara area, 41 were bank-owned foreclosures and 72 were short sales. This would be 3.4 percent bank-owned sales and 6 percent short sales or a total of about 10 percent of last year's sales where distressed.

Currently, there are four active bank-owned single-family listings and three short-sale listings out of 275 available. According to a search of South Coast ZIP codes, there are 159 properties of all types that in are pre-foreclosure or noticed for auction.

If all those homes had come on market and sold last year, they most likely would have only been around 10 percent of the sales. Hardly enough to significantly affect our market.

Concerns of shadow inventory in our area are unwarranted, and the increase in inventory they might bring is illusory.

Ed Fuller is a real estate broker with San Roque Realty Inc. and president of the Santa Barbara Association of Realtors. Contact him at [email protected] or 805.687.1551. The opinions expressed are his own.




Reader Comments

Noozhawk's intent is not to limit the discussion of our stories but to elevate it. Comments should be relevant and must be free of profanity and abusive language and attacks.

By posting on Noozhawk, you:

» Agree to be respectful. Noozhawk encourages intelligent and impassioned discussion and debate, but now has a zero-tolerance policy for those who cannot express their opinions in a civil manner.

» Agree not to use Noozhawk’s forums for personal attacks. This includes any sort of personal attack — including, but not limited to, the people in our stories, the journalists who create these stories, fellow readers who comment on our stories, or anyone else in our community.

» Agree not to post on Noozhawk any comments that can be construed as libelous, defamatory, obscene, profane, vulgar, harmful, threatening, tortious, harassing, abusive, hateful, sexist, racially or ethnically objectionable, or that are invasive of another’s privacy.

» Agree not to post in a manner than emulates, purports or pretends to be someone else. Under no circumstances are readers posting to Noozhawk to knowingly use the name or identity of another person, whether that is another reader on this site, a public figure, celebrity, elected official or fictitious character. This also means readers will not knowingly give out any personal information of other members of these forums.

» Agree not to solicit others. You agree you will not use Noozhawk’s forums to solicit and/or advertise for personal blogs and websites, without Noozhawk’s express written approval.

Noozhawk’s management and editors, in our sole discretion, retain the right to remove individual posts or to revoke the access privileges of anyone who we believe has violated any of these terms or any other term of this agreement; however, we are under no obligation to do so.

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made through PayPal below, or click here for information on recurring credit-card payments.

Thank you for your vital support.

 

Daily Noozhawk

Subscribe to Noozhawk's A.M. Report, our free e-Bulletin sent out every day at 4:15 a.m. with Noozhawk's top stories, hand-picked by the editors.