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Just How Much Shadow Inventory Is Out There?
Many in the mainstream media are touting the increase in home prices reflected in the Case-Shiller Index as evidence that the housing market is coming back.
One of the voices in the wilderness screaming about shadow housing inventory puts an exact figure on just how many units have not yet hit the market.
That number is about 7 million, according to a report from Amherst Securities Group, a fixed-income broker-dealer focusing on mortgage-related investments for institutional customers. The Amherst report calculates that if no other homes are on the market, it would take 1.35 years to sell these seven million properties based on the current pace of existing-home sales.
Since the Government is forcing banks to mark their toxic assets to market, and using its leverage to make banks modify existing underwater loans, the market should return with a vengeance in 90 days. Sorry, I just wanted to see what that fantasy would look like in print.
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Check out what others are saying about this post...[...] An excellent report recently came out about shadow housing inventory. Loyal readers of this site know that the best guess so far estimates 7 million units of shadow housing inventory. [...]