Shadow inventory will peak this summer in 2010.

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!