What's Hot: Lidl Grocery to Open at 700-Unit Tenleytown Development | Above Asking: A $500,000 Premium in Chevy Chase
The Looming Shadow Inventory May Not Be Too Scary

Followers of the healing housing market often warn that a looming shadow inventory — foreclosures, or homes about to go into foreclosure, waiting in the wings — will have a downward effect on prices.
Yesterday, the Wall Street Journal’s Nick Timiraos took a close look at the issue of shadow inventory and determined that the impact of those properties may not be as bad as some think.
From the Wall Street Journal:
There are several reasons why the shadow inventory isn’t as scary as it sounds: It’s concentrated in a handful of markets—it isn’t inherently a national phenomenon. It is being offset by improved demand, particularly from investors. And the housing vacancy rate is low, a product of very little new home construction over the past few years that could counterbalance continued high inventories of foreclosed homes.
Last week, The Sarasota Herald-Tribune came to a similar conclusion. Lenders, the newspaper found, are turning to alternatives to foreclosures like short sales or mortgage-to-lease programs that allow underwater homeowners to stay on as renters. Of the foreclosures that do exist, experts interviewed believe that banks will release them onto the market slowly, at a pace that won’t be too disruptive.
Finally, the number of foreclosures, both locally and nationally, appear to be diminishing. Bloomberg recently wrote that the shadow inventory is shrinking across the country, and RealEstate Business Intelligence found a significant drop in foreclosures in the DC area.
Timiraos will be examining the shadow inventory issue in a series of three posts.
See other articles related to: shadow inventory, housing market trends
This article originally published at http://dc.urbanturf.com/articles/blog/the_looming_shadow_inventory_may_not_be_too_scary/5910
Most Popular... This Week • Last 30 Days • Ever

DC's homebuyer assistance programs can be a bit complex. This edition of First-Timer ... read »

A look around DC to see where home sellers are dropping their prices.... read »

The new five-level residential project is planned for the buildings at 1365-1375 H St... read »

The grocer has announced plans for other stores in Skyland and Columbia Heights.... read »

There are two main things happening in the housing market for this upper NW DC neighb... read »
- First-Timer Primer: DC's Home Buyer Assistance Programs
- Where Are Home Sellers Dropping Their Prices in DC?
- A 50-Unit Development is Pitched For Recognizable Buildings Along H Street
- Lidl to Open Its Third DC Location at New 700-Unit Tenleytown Development
- The Fastest Moving Prices in DC: The Palisades Market, By the Numbers
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro