As the housing crisis has deepened, the national shadow inventory has grown, according to appraiser Jonathan Miller, head of Miller Samuel. Miller described this glut of residential properties as either under construction or newly completed but not officially up for sale because the sales have stalled. “In many cases the developer was unable to sell the initial block of units offered and is therefore unable to release the units behind them,” he explained. This inventory can be dangerous to contend with, according to Miller, because it’s been largely unchanged by the recent uptick in residential activity. “Even with the surge in activity over the past several months, total inventory hasn’t changed all that much,” Miller said.
Residential activity leaves shadow inventory largely unchanged, Miller says
December 22, 2009 04:32PM