Here’s a great interview talking about the foreclosure outlook for 2011. We’ve been fairly lucky in Johnson County KS and the Kansas City area in general compared to many cities. The market will continue to work to absorb inventory in the months to come.

One challenging issue that is frequently discussed regarding inventory is the so-called “shadow” inventory. This is the inventory that banks are holding after completing a foreclosure or deed in lieu but they’ve not put them on the market yet. This shadow inventory is huge and if the banks choose to attempt to liquidate this inventory too quickly it may depress the pricing levels that have somewhat stabilized in some markets and will certainly depress them in areas that are still struggling with excessive foreclosures.

The other inventory issue is sometimes called the “closet” inventory. This is inventory of houses that the owners would like to sell but are not presently on the market. Many of these properties were on the market at one time or another in recent months or years but failed to sell. The owners still want to move the properties but hadn’t been willing to accept the price reductions that were necessary to get them sold. Another part of this closet inventory are homes where the owners have been waiting for a better time to sell but haven’t had them on the market yet.

In certain areas of the Kansas City metro and in most areas of Johnson County KS the seasonal uptick that typically begins shortly after the first of the year seems to have begun in earnest. Properly priced, market ready houses are experiencing good reception from a ready buyer pool looking for their first home, move up homes  or just looking for what they perceive as a bargain.

If you’re considering selling your home and would like to discuss your options, marketing opportunities, timing and pricing, give us a call. Now is a great time to get ahead of some of the coming inventory and possibly get a better price with less competition than in the months  ahead.