You should be nervous. It is a very unsettling time to buy a home right now. I agree that the shadow inventory is disturbing but I am much more concerned about how things will be when the world comes to a realization that our country simply spends to much money and the bond market either collapses or interest rates move sharply upward. That will have a more profound effect, more then the inventory issue in my opinion. However the big question is, how long will this take to happen. Then again some people look at it like, they are happy to have a 5% mortgage when we could see way way way higher mortgages in the future, just how much will prices adjust is the real question and again, how long will this take. We have gotten good at kicking the can.
