[quote=DWCAP][quote=FormerSanDiegan]Some people will die next year and their heirs will sell their property. Those should be counted in shadow inventory as well.
Also, some people will move away, retire to the mountains or other scenarios. The future inventory from these sources should be investigated as well.[/quote]
Why? That is normal inventory flux. There will always be people dying and people moving.
Shadow inventory refers to the ABNORMAL current situation where property ‘owners’ are not fufilling their contractual obligations, and the banks are not acting upon it and taking the house to foreclosure and/or sale.
The properties you describe are not shadow inventory, their owners are paying their morgage, the bank has no legal reason to take the property, and/or no morgage is heald on the property (ie old people paid it off before they die).[/quote]
I think former was being sarcastic, the initial definition of shadow inventory was bank owned homes being left vacant by the bank to control market prices through inventory control. The definition keeps expanding as the concept has become commonplace and the vacants (while some exist) aren’t that big of a number. Some consider non payers with no bank foreclosure process as part of the shadow, some consider anything with a nod part of it, the problem is that the term was born on the boards of housing blogs and it had one definition, now that the msm has adopted the term, it is being defined differently by different people for different reasons and it confuses me sometimes.
