What does shadow inventory mean for US real estate?
Shadow inventory is the term used for US properties that are not yet on the market but are in various process of foreclosure. It’s difficult to estimate how many properties can actually be classified as shadow inventory but the general consensus is that there are lots.
What does this mean for foreign investors looking to invest in US real estate? It means that there’s still time (in many markets, some markets are on the rebound already) to get organised and start investing. But conditions won’t be like this forever. Once lending eases up, consumer confidence picks up and unemployment decreases, all of which are starting to happen, market activity will crank into gear as it has been doing towards the latter part of last year, and the beginning of this year.
The key is to not think conditions will be like this forever and that the opportunities are there now.