CR is covering the news better than ever, but for those who may have missed this week’s latest reports on the so-called ‘shadow inventory’, here are two articles (hat tip to MM for sending both!)
An excerpt from Bloomberg’s:
“The crash in U.S. home prices will probably resume because about 7 million properties that are likely to be seized by lenders have yet to hit the market, Amherst Securities Group LP analysts said.”
Talking about a flood of foreclosures may sell a few newspapers, but will it ever happen?
Here are the number of new REO listings inputted onto the MLS the last seven weeks:
211, 198, 191, 208, 196, 177, 208
We could say they increased 18% in the latest week, but hardly a tsunami. We’d need to see hundreds more per week to believe the flood is for real. Until then, the drip method will remain the servicers’ preferred choice of liquidation.
Who knows if they could flood the market if they wanted to?
I heard a good one yesterday though from an insider – Chase is “sitting on” roughly 450,000 properties, mostly from the WaMu portfolio, which I speculated means they have a lot of defaulters, not REOs. Unless they are hiring thousands of new staff people to push those through, it’ll take them years to resolve that mess.
Expect the trickle to continue, at least for now.
Let’s take a poll:
Do you think we’ll ever see a flood, or will the-powers-that-be keep trickling us forever?