“Shadow inventory” are properties that are either foreclosed on or are expected to be soon and are not on the market yet. Investors often ask me about the “huge shadow inventory” looming in Las Vegas which they believe will some day flood the market. My response is, don’t always believe what you read on the investment blogs. I’ve checked and double-checked and couldn’t find much evidence of banks holding on to Las Vegas / Clark county inventory. I specifically asked Wells Fargo to confirm their previous statement that they are not holding back on releasing inventory. A spokesman replied, “That’s correct. It’s not beneficial for us to do so. We want to get the asset sold.”
Well, now the statistics bear that out. The National Association of Realtors just released their “Las Vegas-Paradise Area Local Market Report, First Quarter 2011″ So you might think that Las Vegas is in the top three states with the most shadow inventory. Or maybe, top ten? How about the truth: LAST. Las Vegas has the LEAST AMOUNT OF inventory off the market in terms of months supply. Here is the list:
