The Gulf Shores housing recovery seems to be seeing a bottom finally getting closer, but getting there remains dicey. Home sales are steady, more sellers are lowering their prices and the inventory of homes for sale is dropping.
Unfortunately, the inventory doesn’t include the so-called “shadow inventory” of both distressed properties and those still held by owners who are underwater, owing more than their home is worth, and at risk for default.
Gulf Shores Housing Sales Up
No doubt, sales of existing homes are up, according to the National Association of Realtors’ (NAR) latest Trend Report.
Another thing affecting the Gulf Shores housing recovery is inventory. Inventories are expected to increase in the coming months as lenders process and list the huge backlog of distressed properties freed by the recent multi-state attorneys general agreement.
The shadow foreclosure inventory is considerably higher than the total inventory on the market today. Unless properly managed, the disposition of such properties could easily undermine the progress that has been made to date, this also according to NAR.
Radar Logic agrees. “The Gulf Shores housing price and sales trends observed in 2011 are consistent with sellers dropping their prices to meet bids from bargain-hunting buyers,” and that’s eating away at inventories, Radar reports.
Would-be Gulf Shores home buyers are still experiencing difficulty accessing mortgage financing. While rates remain near record lows, lenders remain risk averse and underwriting standards remain extremely strict.
What is your opinion about the Gulf Shores housing recovery? Is a bottom near? Or do we still have a ways to go?