The foreclosure moratorium was not long enough to help this market. It was just long enough to attract attention.
The banks will not release the shadow inventory because they are afraid to completely destroy the real estate market. However, in my opinion a long term moritorium would be perfect. In order to bring the shadow inventory to market, the banks need prices of homes to rise. A delayed moratorium would cause the supply to decrease which in turn , if demand remains steady, would cause prices to increase, and allow more inventory at a steady pace.
We cannot flood the market with large amounts of inventory. Since we know that recovery is delayed a planned or strategic release of shadow inventory would not damage the market as much as a flood would.
For all your real estate needs contact a professional Realtor Pat Yoest at Century 21 Aadvantage Gold, 702-521-1442 million dollar producer.
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