Re-inflation of post-bubble housing markets and the threat posed by shadow inventory

Another installment from Jim the Realtor, showing “euphoric” demand for high-end REO housing in north San Diego beach communities:

Relatedly, Jim has an interesting post about shadow inventory using Carmel, Calif., as a test case.

No one disputes that an enormous number of foreclosures are in the pipeline. (One recent report put the number at 7 million.) It remains to be seen, however, whether these foreclosures abruptly flood the market (causing a crash in prices) or trickle out over a period of years.

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One Comment on “Re-inflation of post-bubble housing markets and the threat posed by shadow inventory”

  1. [...] demand and limited supply in many post-bubble cities are leading to bidding wars, especially (but not exclusively) for low-end properties. In San Diego, prices are up 14 percent in the past eight months. In Las [...]


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