When will Portland sell through its Shadow Inventory?
According to Standard and Poor’s first quarter 2012 data, it will take Portland and the country 3.8 years or about 46 months to sell through all of the distressed properties waiting to come out on the real estate market. S&P is counting all the shadow inventory, the number of homes with mortgage payments that are 90 days or more delinquent (many short sales) and those properties already in foreclosure.
As for active foreclosures, Portland would sell through its inventory in about 19 months according to RealtyTrac, but this does not include properties currently behind in their mortgage payments. According to CoreLogic, 5.5% of Portland is behind on its mortgage payments.
What does this mean for the Portland real estate market? Expect it to take 3 to 5 years before the PDX housing market fully recovers. Portland Realtors know that nothing is more responsible for the downturn than distressed properties. At the same time, the economy is slowly recovering and Portland buyers are now out in force. End result? There should be a lot of good deals for everyone looking to get into the market for the next few years. Contact your Portland real estate agent today!May 16, 2012