morgan stanley: Excess Housing Inventory- What Does it Mean?
- 05/25/10 07:53 AM
In Morgan Stanley's new finance report, Housing Market Insights, the investment bank estimates that at the rate of current home sales, it would take 47 months for us to clear the "shadow inventory" of houses. What exactly is the shadow inventory? Morgan Stanley's method of calculating the shadow inventory includes all loans 90 days or more behind on their payments, most loans that are 30-60 days behind, and properties that are already foreclosure. In short, unless they go through a successful loan modification or short sale, there is a strong possibility of the house going into foreclosure and ending up on (7 comments)