Shadow inventory and why its important for Sellers in Denver
Posted by Alex Neir on Thursday, November 29, 2012 at 3:55 PM
By Alex Neir / November 29, 2012
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Shadow inventory and why its important for Sellers in Denver
Before we talk about Shadow Inventory we have to look at what the definition of inventory is. Inventory in real estate terms is the current number of homes that are actively on the market. When we Realtors talk about inventory, we like to express it in the number of months. You determine this by calculating how many homes are selling in a given area vs. how many homes are on the market in that same given area. By doing this it gives us an indication as to the amount of months it will take to sell the existing inventory. For example, if there are 100 homes on the market in a given neighborhood and only 20 are selling per month,...