Re-inflation of post-bubble housing markets and the threat posed by shadow inventoryPosted: October 12, 2009
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.