Beavercreek's Luxury Homes Holding Interest
Hello everyone, if you're not a Realtor, you may not understand what "shadow inventory" is. These are foreclosed properties banks hold back from the market, and homes for sale in Beaverceek Ohio and other Dayton Ohio real estate markets can be mildly to drastically affected by it.
I was asked recently by a buyer in the luxury market range for real estate in Beavercreek, Ohio if I thought house values in Dayton rising so dramatically would effect the Beavercreek Market. Interestingly, I had not one but two conversations with REO agents (they deal with prepping and listing foreclosed properties for banks) and had been told of large numbers of shadow inventory not yet in play in the Greater Dayton Metro area, leaving many real estate agents pensive.
If you're unaware, Dayton homes have been undervalued upwards of 17% for quite a long time, and now prices are skyrocketing. But this is only like the stock market correcting itself. Back to shadow inventory, murmurs in local real estate circles belie banks trying to artificially inflate local housing markets.
What many are concerned with is the possibility of banks releasing too large a number of these "shadow properties" at once, stymieing house value growth. An astute buyer, my client is aware of these current topics. A good question, deserving of a good answer.
Take a look at this Trendsgraphix data I pulled for luxury homes for sale in Beavercreek, Ohio; priced at $350,000 and up.
As you can see, residential real estate in Beavercreek, Ohio over $350k was sluggish in sales early this year, same as earlier in the year in 2014, but balancing out. Too, this is the most number of Beavercreek homes on the market since March, 2014. A hint sellers are having a bit more confidence, and there are more buyers than last year. A little competition on both sides is healthy and most would say it's seller's market, I believe between a balanced but leaning towards a seller's market would be closer to the mark.
Now, I don't think the banks are going to release large numbers of shadow inventory all at once, but I do think once it starts being released, Beavercreek, Ohio real estate and other markets like homes for sale in Centerville, Ohio or luxury home markets like Springboro's real estate will see slower growth, but still make gains. Just not significant ones.
Releasing all that hidden inventory all at once would have drastic impact, either potentially seriously dropping house values, or simply stopping and stalling house value growth for a long and arduous period.
I'm reasonably sure it's safe to buy for the future without expecting plummeting prices in Dayton's many popular suburbs.