John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... There is a growing “shadow market” fueled by reluctant landlords who are unable to sell their homes in this tough market, an owner of a residential property management company told InsideRealEstateNews.com today.
“These are the people who are renting their homes by default,” said Robert Alldredge, owner of Jericho Properties Realty in Lakewood. These are people who tried to sell their home, but have been unable to sell it for their asking price, he said. Rather than continue to drop their asking price, they rent it.
Typically, he sees people losing $200 to $300 a month when they rent their homes under these circumstances. That, of course, is far preferable to lose $1,500 to $2,000 each month on a mortgage.
“It’s hard to get a handle on the size of this shadow market,” he said. “Their hope and goal is that they can wait out the market and sell their homes for a profit later. Today, if they tried to sell it, it would be a short sale.”
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[...] seemed to have peaked last year and early this year. The shadow market, discussed in an earlier blog, is a hard-to-count inventory of homes. Part of the shadow market comes from people unable to sell [...]