Dayton House Values Rising - But Shadow Inventory Lurks?
What you don't know could affect your buying decisions.
It's interesting looking back at the Dayton Ohio real estate market the last few years. Since 2008 there have been the sweet deals on foreclosed property, buyers winning left and right with low-ball offers, banks seemed desperate to unload.
Dayton Ohio Homes for Sale were Undervalued 17%
Dayton homes for sale have been upwards of 17% undervalued in the last few years though, and now, it would seem prices are skyrocketing and only natural once home owners in the Dayton Ohio real estate market began to perceive it and grew more confident.
If you're a real estate, you end up talking with loan officers and REO agents (they handle the dunging-out, brooming and listing of foreclosed properties for banks) and word on the wire is that there is still a ton of "shadow inventory".
These are foreclosures still on the bank's book and not on the market and being withheld. So, when you think about it, it's like an artificially inflated market and the slow (or fast release) of the considerable number of foreclosed property can have a positive or drastic negative effect on a current local market.
Murmurs of large shadow inventory will excite investors, but not new home owners and prospective buyers may waffle wondering about whether to hold off or not.
Not all communities around the nation have large numbers in shadow inventory, but you can be fairly safe betting there are properties being withheld from your market still.
My advice is simple, if anyone tells you "buy now, house values are skyrocketing", take it with a grain of salt. It's most likely that over time these properties will trickle out, faster in some places, slower in other areas and in the end will balance out. It's still a very decent time to buy a home, but don't expect miracles when it comes to your home's worth and equity build up. I believe when it's 2018, we'll be looking back and seeing a "ping pong" of the house value barometer, but with an average slow and steady climb.