Shadow Foreclosure Inventory Mounts in Shelby County Tennessee

Jan. 26, 2011 - PRLog -- Santa Barbara, CA ---  A foreclosure trends study from RealtyStore shows a fraction of foreclosed homes in Shelby County Tennessee are currently listed for sale. RealtyStore researched the database of 2,103 foreclosures recorded in the county and found both banks and government owners of local real estate foreclosures have twice as many properties pending listing as are currently up for sale. These pending listings create a sizable shadow inventory of dormant listings, according to RealtyStore.

"Our research revealed 33% of all local, completed foreclosures are presently listed for re-sale in Shelby County," noted Peter Ranck, Vice President at RealtyStore. "Each group of REO foreclosure owners, whether banks or government sponsored enterprises, have yet to bring over 60% of their respective foreclosed properties to market in the county. We also found the prices for their active foreclosure listings are running at about 50% below the Shelby County market median price. Depending on how and when the shadow inventory is brought to market, these dormant listings may put additional pressure on local house prices over time."

An analysis of all 728 for-sale foreclosure listings in Shelby County revealed a median foreclosure price of $75,000. This price point is 48% below Shelby's overall market median price of $142,950. When reviewed by REO foreclosure seller, HUD homes posts the lowest median price at $45,000, or 69% below market median. Bank foreclosures are next lowest at $79,700, which is 44% below market. Freddie Mac - Fannie Mae foreclosure listings show a median price 41% below market at $84,900, while the few listings from the VA show a higher median at $103,900.

Price ranges for government owned foreclosures (including HUD homes, Fannie Mae foreclosure or VA foreclosed houses) start at $4,900 and reach $384,900. Shelby County bank foreclosure prices range from $3,500 for a 3 bedroom/2bath ranch home up to $1.28 million for a 5 bedroom/5bathroom custom home with 9,000 square feet of living space.

Visit here for listings HUD homes http://www.realtystore.com/foreclosures/hud-homes

See more details on listings of bank foreclosures http://www.realtystore.com/foreclosures/bank-foreclosures...

View foreclosures in Shelby County at http://www.realtystore.com/foreclosures/tennessee-foreclo...

Glossary of foreclosure listings terms:
Median price = The mid point of all prices of homes listed for sale in the market. The point where half of homes for sale are priced above and half are listed below the reported median price.

REO = Real Estate Owned. Homes or land fully foreclosed upon and having title fully assumed by a lending institution, bank or a government sponsored enterprise (GSE) such as HUD homes, Freddie Mac, Fannie Mae or the VA.

Foreclosure listing = An REO property actively listed for sale with a posted for-sale price.

Shadow inventory = REO property which is in an institutional portfolio of owned assets, but is not presently listed with a price for re-sale on the public market.

Reporting methodology
RealtyStore County Foreclosure Trends studies provide the total number of REO (real estate owned) foreclosure properties with a recording date on or before the date of this release. REO properties have completed the foreclosure process and have been repossessed by a bank or government sponsored loan guarantor such as Fannie Mae, Freddie Mac, HUD or the VA. REO title holders, inventory counts and prices in any area can vary at any time. REO counts and prices are accessed through RealtyStore’s proprietary database which is derived through hundreds of public and private data providers. Local housing market data is derived from third party and public records offices.

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About RealtyStore
RealtyStore (www.realtystore.com), a division of Nations Info Corporation, is the leading provider of foreclosure listings and discount property data nationwide. RealtyStore's mission is to empower its customers with the tools, education and analysis required to identify and potentially maximize profits with undervalued real estate. Collected from hundreds of public and private sources, RealtyStore's proprietary database includes over 1 million listings including pre foreclosures, foreclosures, short sales, tax defaults and rent to own or owner financed listings. As the foreclosure listings industry leader, RealtyStore.com is the most visited foreclosure website, averaging over 1.1 million unique visitors per month in Q3, 2010. Realtystore.com is the only specialized foreclosures website to rank in the Hitwise Top 20 Internet Usage Report for the Real Estate Category (October 2010)