Mark Hanson: Real Estate Shadow Inventory Could Take 8 Years to Clear


One of the smartest people in the mortgage market shared this analysis with his blog readers:

Mark Hanson

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):

News Observer

Apparently, in the development outlined in the article linked above, they failed to sell even ONE unit.

Not one unit sold in this building

*picture from NewsObserver site