It feels like I’ve been writing about “shadow inventory” — homes
that are in foreclosure but haven’t hit the market yet —
forever. Yet no flood of foreclosures has yet inundated the
market, and as a matter of fact, inventory has been quite scarce
lately. Is there anything to this shadow inventory concept?
As Kelly Bennett documented in a recent blog
entry, the answer is yes. Kelly noted as of Tuesday, there
were 19,453 San Diego homes that were in foreclosure but that were not
yet listed for sale. That, my friends, is your shadow inventory.
For purely illustrative purposes, let’s try to understand what the
effect would be if all these homes in foreclosure were to suddenly hit