“Shadow Inventory” of homes plaguing recovery?
In the shadows? For a couple of years some pundits have stated that many banks are sitting on untapped stores of houses, that once released to the market for sale, may topple a recovering market. Other economists have argued that the estimated “shadow inventory” is overstated. This month Kiplinger News reports in Housing Market Indicators Improve that the number of homes not yet foreclosed on has declined for the 5th month. This is at least one indication that while things may not be improving at a fast clip, significant further deterioration may be avoided.