Q & A With America’s Real Estate Professor
By Leonard Baron
Q. About six months ago I kept reading about all the “Shadow Inventory” that was going to hit the market, potentially dropping prices, and bringing to market lots of inventory for first-time buyers like myself. Sure doesn’t seem like that came true? Is this inventory still coming to the market? Tom L., Naples, FL.
A. I’m wondering myself where this entire inventory has gone. Shadow inventory is generally bank-owned properties not on the market, plus all the properties that were still owned by the borrowers and in default (or at least in trouble) that were not yet listed for sale. Millions of properties reportedly fit the shadow inventory category and every economist and pundit, including myself, felt