Will shadow inventory of homes prolong housing slump?

Optimists say banks have yet to release these Homes for Sale in big numbers and are not likely to do so anytime soon, for fear of keeping the housing market depressed. Categories: Shadow inventory (2) Permalink | Comments (3) Comments Another negative article designed to keep the scare tactics alive and ensure that the 6+ years of Real Estate decline continue. Will the people who publish these articles ever understand the negative impact they have on the people who are trying to survive down here. Do you ever talk about prices being less than half what they were 5 years ago, interest rates being lowest since WW2, and sellers anxious to sell. Would these factors not call for a occasional positive post and encouragment to buy something while rates and prices are at rock bottom. Posted by: chuckarue | September 6, 2011 12:43 PM The housing mess is Not going to get fixed anytime soom. It took about 8 years to get this jacked up and it will take at least that long to get back to right. News every day they talk about prices falling to new lows, they are not new lows, not yet at least. The prices houses were bringing 5 years ago was based on air and not mich else, it sure wasn't based on anything intrinsic. Prices were up 200% in 5 years, Nothing can support that, and the prices have fallen to nowhere near that. Bank sitting on that house now holdingout for $194. Do not use profanity, ethnic or racial slurs, or take shots at anyone's sexual orientation or religion. If you can't be nice, we reserve the right to remove your material and ban users who violate our Terms of Service. Post a comment (If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. He covers the housing market for the Sun Sentinel after spending seven years on the real estate beat for that daily paper just up the road. The real wrath came in early 2006, from readers, when he wrote that the five-year housing boom was over. They argued, cursed and complained before grudgingly admitting he was right. Julie earned a master's degree in communications at Stanford University and a bachelor's degree at the University of Chicago. She enjoys dancing, painting, cooking and roller skating. E-mail newslettersGet the news that matters to you delivered to your inbox. Breaking news, hurricane alerts, news from your neighborhood, and more. Homes for Sale