links for 2009-05-15
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Northeast Housing Market "Shadow Inventory" May Approach 40%

Realty site Zillow notes a potentially giant (think 3-4 years of typical home sales volume) shadow inventory building nationwide in the housing market. If true, this would predict continued downwards price pressure across the US for some time to come as supply would bump every time there's any apparent uptick in the market, driving prices back down.

Zillow Survey

Particularly interesting is the column for the Northeast -- although home prices here have declined less than in the West or the Southeast (after growing as much or more over the past decade) the percentage of homeowners that said they were at least "somewhat likely" to put their home on the market in the next 12 months if prices stabilized was almost 40%. That's over six years worth of "normal" home sales volume waiting on the bench, looking to get into the game.

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