S & P Estimates Shadow Inventory is at $450 Billion Dollars

Real Estate Sales Representative with Wizards of Waz Real Estate

Standard and Poors estimates that this is the principle balance of residential properties in foreclosure but not yet on the market. They categorize the shadow inventory as containing loans at least 90-days delinquent or somewhere in the foreclosure process, and properties taken into REO.

At the current pace of home sales, they predict it would take 49 months to clear this inventory.It should be noted that this is a national average and definitely needs to be adjusted for local markets. For example, they claim that, given the current rates in the Phonix market, we only have 30 months of this inventory and that this would be a sign that the worst is over.

That may be true, but in Maricopa Arizona we have actually seen values rise in the past few months due to strong seasonal buying activity and lack of inventory. If, in fact, a release of this shadow inventory begins any time soon, I forecast that values will dip again (the so called double dip).

Read more here: http://bit.ly/i6tbvM


Comments (1)

Aslan Realty Advisors, LLC
Fort Myers, FL
Staying a step ahead with Pride!

Great information, I wish the MSA I live in was included.

Do you ever go to the FDIC RECON site, has awesome information.

Link below:

Regional Economic Conditions (RECON) was originally designed to assist the FDIC in the examination process by providing economic information at the state, MSA (Metropolitan Statistical Area), and county levels. It is helpful in the analysis of risks facing financial institutions. We believe that easy access to timely, high-quality information about economic conditions and risks could be of benefit to some banks, as well as the general public.
Using RECON, anyone with internet access is able to drill down to any state, MSA, or county to view standard graphs, tables, and maps depicting economic conditions and how they have changed over time.
RECON contains a 'shopping cart' feature that allows the user to assemble charts and tables of interest and then print them together at the end of their session.

Economic data is arranged by geography. Start by choosing a state from the dropdown menu on the left-hand side of the screen.


Apr 26, 2011 11:49 AM