One of the smartest people in the mortgage market shared this analysis with his blog readers:
According to his research, if foreclosures kept up at the April 2010 pace, it would take more than years to clear all of the non-performing, NOD type homes (shadow inventory – not marked as defaulted on bank balance sheets) in the market.
While you are digesting that report, check this out. For a good example of adding to the figure of shadow inventory, and following up my article yesterday about foolish Congressmen (thanks to Calculated Risk for finding this):
Apparently, in the development outlined in the article linked above, they failed to sell even ONE unit.
*picture from NewsObserver site