Maui Real Estate

Feb: 22

Shadow Inventory

There has been a lot of talk about “Shadow Inventory” recently. This refers to properties with delinquent mortgage loans.

It is currently estimated that there are 7.7 million properties with delinquent mortgages, and that over half of these, approximately 5.5 million will end up being foreclosed on in the next two years.

According to a new study by John Burns Real Estate Consulting, the “Shadow Inventory” will not hurt the market because there is strong investor demand.

This has certainly been the case here on Maui, where well priced REO or short sale listings are receiving multiple offers.

An example of that was a 3 bedroom 2 bath 3 year old starter home in Wailuku where the price was reduced to $299,999. Within only a few days there were 14 offers, most of which were above the asking price.

Have a wonderful week!

Mahalo Nui Loa,

The Smith Team

P.S. Tired of the snow. Come warm up in beautiful, warm, sunny Maui. It’s a great day to be living in Paradise.