U.S. Real Estate Shadow Inventory May Stall Recovery

June 29, 2010 by · Leave a Comment
Filed under: REO News 

Housing Watch – Shadow inventory is real estate to sell that we don’t yet know about. It’s made up of homes that soon will be on the market, but not for the usual reasons.

It includes homes that are usually several months in arrears on their mortgage and about to hit the foreclosure circuit; homes that are 90-plus days delinquent and currently languishing in foreclosure; or bank-owned (REOs) that have not yet been put on the market. But come on the market they will, one way or the other, and at greatly discounted prices – distressed or short sales.

These houses will keep our values flat as long as they exist. How?

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