Another housing slump coming?
Analysts say 7 million soon-to-be foreclosed properties have yet to hit the market.
Posted by Elizabeth Strott on Thursday, September 24, 2009 8:59 AM
Any optimists touting a housing recovery might want to pause and think about this: Amherst Securities Group analysts believe the market faces another major hurdle because about 7 million properties that are likely to be seized by lenders have yet to hit the market.
The "huge shadow inventory" reflects mortgages already being foreclosed upon or now delinquent and likely to be and, assuming no other properties are on the market, it would take 1.35 years to sell this inventory based on the current pace of existing-home sales, analyst Laurie Goodman wrote in a note to clients.
In 2005, there were 1.27 million properties in the same situation.