Summer 2009 marked the first time in almost two years that the seasonally-adjusted Standard & Poor’s/Case-Shiller Home Price Index rose, according to a S&P report released today (see full report below), suggesting that the nationwide housing market correctional period may close to an end. But it’s not all good news. The specter of shadow inventory is looming over the market, according to the S&P report, which projects a looming shadow inventory could have a negative impact on home prices in the coming months, as more homes face imminent delinquencies and subsequent foreclosure. In total, the shadow inventory seen today could take as long as 33 months to clear, according to the report, and the amount of potential distressed inventory stands to grow. “We believe that the recent reversal in housing prices is the result of a temporary constriction in the supply of foreclosed homes on the market,” the report says. “It is our opinion that recent positive housing reports should not be construed as a sign that the distress in the residential housing market is abating.” TRD
Shadow Inventory – Housing Overhang Article
Climbing prices belie future distress, S&P says
Miami /
Feb.February 16, 2010
12:00 PM
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