Don't tell me anything about shadow inventory: Who new about shadow buyers?
For years, we've been hearing about "shadow inventory", or this mysterious stockpile of bank-owned properties that at some point would be released into the market like some biblical plague.
I'm not buying it. (No pun intended)
The new buzz phrase I'm officially coining is "shadow buyers".
Who had any idea that such an unknown growing swell of buyers was looming in the darkness until now?
And this pool of buyers is a combination of first-time buyers, buyers looking to upgrade, and investors.
The amount of activity and home value gains being witnessed in some part of the countries is record-breaking.
And this is not hypothetical, like the shadow inventory "theory". I see it myself from both my listings and also buyers that I am working with.
And one important thing to keep in mind: Any movement in the residential real estate market doesn't come over night.
What I mean by this is - once there is momentum in any direction, a change in that direction doesn't happen instantly. Just as we saw it took years for the perception in the real estate market to change from a downward spiral to an upward direction, it is the same for both sides. Now that it is perceived that we are in an upward market, you're not going to see any change with that any time soon.
But the point is, I don't believe anyone knew about the number of potential buyers that would be appearing once the official "up" whistle was blown.