We hear about "Shadow Inventory" all the time in the current real estate market. What is it and what affect will it have on home prices in 2013/14?
Shadow inventory refers to bank owned homes not currently on the market, homes that have been foreclosed upon, and homes that are delinquent on their mortgage that are close to being foreclosed. Although there is still a substantial amount of shadow inventory, it has decreased 12.3% over the past year and projected to continue its decrease as investors continue to snatch up these properties. This will have a positive impact on home values as the housing market continues its recovery.
Here is a quick read with some informative graphs that provide a nice picture. http://goo.gl/P6fMs