Tom Lindmark

Housing: How Big Is the Shadow Inventory?

There are several categories that contribute to real estate shadow inventory. I chose to focus on the pent up supply represented by owners who have been deferring the sale of their house. The Bloomberg article referenced does include a short discussion of foreclosures that might not yet have hit the market.

Frankly, I've read a number of articles about the banks withholding foreclosures from the market. I keep seeing conflicting data, so I don't know to what extent this shadow inventory actually exists. It might be significant or it might be the stuff of urban legends. I can't get a handle on it.