Shadow inventory has been the buzz word for the past 6 or seven years, but I am glad to admit that no matter how you look at it, the shadow has a shortest tail in 2014 than at any period in the past five years.
I got this graph via a Housing Summit during NAR's Chief Economist,Dr. Lawrence Yun's speach. It shows that we are almost back to a normal level again. There will always be mortgages in default due to job loss, divorce, medical issues, death, etc.
If you compared this to a chart of pent up demand based on homebuyers that lost their home due to short sale and foreclosure coming back into the market, increasing employment, low interest rates, etc, you will find that the Shadow Buyers (those lurking around waiting to buy) will outpace inventory causing house prices to continue to rise in the coming year here in Idaho.
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