The Myth of the 'Shadow Inventory'

[Ted Harris]

We've been hearing about this for almost three years now - I agree with article below which pts out the problem differs widely from market to market and many of these are low-end or tear down properties which won't have any bearing on mid or high-end homes. Also, inventory levels in many areas continue to shrink (miami, vegas) ....

http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-shadow-real-estate-inventory-shadow-inventory-shadow-home-inventory-delinquent-loans-home-foreclosures-bank-real-estate-owned-2808.php

[Account Closed]

Ted, the shadow market has certainly not been the problem that some thought it would be. IMO though it is still to early to know to know what is going to happen.

If the economy doesn't turn around in the near future. There will be more distressed homeowners and more properties that will go into foreclosure.

Jobs need to be created if we are going to stop the bleeding. Those still working in many cases are more likely now to hold on to what they have. Those without jobs are gong to have increasingly more trouble holding onto what they have.

IMO if the economy doesn't improve soon, more and more will try to start their own business.