Housing 'Shadow Inventory' Looms

Homes are in short supply, but is another bubble about to burst?

By Susan Taylor
|  Tuesday, Jan 5, 2010  |  Updated 5:31 AM PDT
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Housing 'Shadow Inventory' Looms

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Home prices in San Diego County have been rising steadily, but real estate analysts warn that high unemployment and the "shadow" inventory could push prices down again.  

Shadow inventory are homes that are in foreclosure, but haven't hit the market.

According to our media partners at the voiceofsandiego.org, there are more than 19,000 San Diego homes in foreclosure, but not yet listed for sale.   If all the shadow inventory homes were to go up for sale, they would have a significant impact on the local housing market, increasing the inventory by 162% . 

So far the shadow inventory has only trickled into the housing market, thanks to the government bailout  programs and banks but how long can government support last? What's being done to get the still skittish private sector to start loaning money to homebuyers?

 University of San Diego economist Alan Gin says you can't have a housing recovery until the job market bounces back and that might be 6 months away. 

You can read more about this in the voiceofsandiego.org.

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