In June there was a large increase in new bank owned properties (REO’s) coming on the market. Maybe some of the shadow inventory that everyone has been talking about is starting to get through the jammed up foreclosure process. If that is true than the new bank owned inventory will put pressure on home prices.

The total inventory of bank owned property seems to be still decreasing in all three counties. I hope to see this trend continue!

Even though the bank owned properties are not increasing it seems that Long Island homes that are trying to be sold short is still increasing. All three counties short sale inventory is increasing  and are at 18 month highs. Even though the banks are getting better at working through the short sale process it is not a good trend to see developing.

Here is another chart showing that the bank owned property is still on the decline, I am hoping all the shadow inventory talk does not include Long Island. I would like to see this trend continue.

Even though there is a lot of talk about bank owned properties we are still not seeing an increasing supply on Long Island… yet?

No real change here nor does there seems to be a trend developing. With all the talk about bank foreclosures you would think that that distressed sales would account for a higher percentage of sales.

A Lis Pendens is the first legal process of the mortgagee starting a foreclosure action. The latest data shows that Lis Pendens filings have declined for the second straight quarter, lets keep our fingers crossed that this continues. If the trend does continue it could be the first signs that the market may be starting to recover.

This chart shows how many new bank owned properties came on the market in the month of March ‘10. As you can see Nassau & Suffolk counties shows a large increase in new inventory.

All three counties saw an increase of properties that are being sold short with Suffolk hitting an all time high.

Bank inventory is still declining in Nassau and Queens counties with only Suffolk county showing a large increase in bank owned  inventory.

This chart shows the new bank inventory that came on the market for each month. I feel this chart gives a better representation of how the foreclosure market really looks like. Unlike the “Bank Owned Inventory Chart” which shows the total inventory (which you can see here “Long Island Bank Owned Inventory”), you will see all three counties are hovering at all time lows mostly due to that the fact that bank owned inventory is selling!