Shadow inventory will peak this summer in 2010.

Real Estate Broker/Owner with The Hilbun Team DRE# 01872559

Barclays Capital analysts did a recent study and found that homes entering into the foreclosure process and already in the foreclosure pipeline will peak this summer 2010 and then begin to gradually decline.  A shadow inventory flood is not a threat, their study shows that the market will be able to take on the 130,000 distressed properties monthly as the market begins to stabilize through the remainder of 2010.  They stated that they can forecast these homes being processed and put onto the market over the next 3 years.

Essentially meaning, there will be no mass exodus of homes flooding into the market and kill current home values.  Prices will continue to stabilize and homes will remain affordable for Americans to buy and our market will bounce back!

Comments (2)

David Obbee - Agoura Hills, CA

Craig: I hope the report is right, because I have a feeling it will be much worse.  No matter what, though, we will eventually recover.  Thanks for sharing!

May 18, 2010 04:05 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Craig....their are pockets in the country and in the states that will be an exception to your most interesting post. Inventory where I live is being repressed and released strategically after banks realized they were responsible for interrupting their own goals by misusing or ignoring the laws of supply and demand. I always hope for the best, but prepare for the worst...........thank you


May 18, 2010 04:14 AM