Where is the “shadow inventory” lurking? When will it rear its ugly head?

If I were a buyer or seller today I sure would be confused...hearing the gloom and doom on a national level always seems to trump what is happening locally still unfortunatley

In my areas there are a lack of listings, so I wish they would just list the darn things. They would sell them for what there worth now and be done holding them.

I see the opposite... at least in the suburbs!

Richard,  No doubt it is creating uncertainty!  I just pulled all the title info yesterday on a home that should have been on the market long ago and I have a buyer what would likely pursue it aggressively.  My mind does not think think like the big boys apparently. I say If its ready for the market then MARKET!

I hate to see those houses vacant for so long, they need someone to heat them and care for them. A cold damp house invites mold and we know how buyers feel about the "M" word.

There are a few homes sitting empty but not all tham many in my area.

I see it as a business plan - hold them off the market while hoping a decreased inventory may stabilize prices....while they deteriorate!

Everyone I talk to who is REALLY connected to the banks says that the amount of shadow inventory is much lower than the media talks about.  These are people here in California talking about some of the hardest hit foreclosure regions in the US.  I think what's available is lower and the banks are letting it go in phases to avoid oversupply in struggling markets.

A strange thing showed up in our 2010 census..  Many homes that are not occupied, not for rent, not for sale, but are in the county.. I don't think they are shadow inventory, just not sure what they are. 

Good morning Richard,

No one is probably "in the know" about just how many homes may be lurking in the shadows.  Between the Washington and Media "spins", the public never gets accurate numbers on anything!

I agree, what is out there lurking....  Too many homes just sitting, empty and taking a beating.  An empty home is not a good thing.  Will be interesting, I'm not sure what they ( the banks) are doing holding on to so much inventory.  I see the NOD's every day vs. what is for sale and the numbers don't match... especially when I have sellers receiving calls from banks telling them instead of a short sale they will grant them a deed in lieu 

The shadow inventory is out there, no doubt about it.  I'm just afraid if it all hits at once, the market is just going to crash and burn.