Yesterday I wrote about how there is this HUGE supply of homes that are not on the market, but are awaiting banks to put them on the market, the 'shadow inventory.' I just read this article from Diana Olick at CNBC,article here, about how much there really is. She used an example of the DC housing market. There is a reported 5.1 month supply in DC. But, if you add in the estimated 'shadow inventory,' you get a 13.2 month supply. That is what we should be worried about.
Great article from Diana.