I heard once (don’t know if it’s still true) that there is a 5 year inventory of condos for sale in the state of Florida. In my “area” there is a 14 year inventory of residential lots for sale. In some other areas, not so much.

Tom

It makes perfect sense. The greatest impact will be on buyer attitudes toward negotiation. Buyers will expect that all sellers everywhere are in the same predicament – a strong buyer’s market – and will bash sellers unmercifully. I’ve already experienced buyers who have lost great opportunities by believing everything they read about the market and push the limit of sellers – who end up accepting another less-aggressive offer.

You’re right, all real estate is local and to that point, some markets will be plagued by excess foreclosure and delayed seller inventory longer than others.

However, I do believe that to some extent, all areas are going to see the inventory issues, it’s just that some of them will see it more than others.

Does that make sense?

Tom

All real estate is local. Some areas will be plagued by excess foreclosure inventory, other areas will absorb that foreclosure inventory just fine. Let’s not paint too gloomy of a picture here!