Real estate pundits love to throw around the term "shadow inventory". The doomsayers theorize that banks are holding onto an abundance of foreclosed inventory and are not releasing it for sale. The reason is that with a housing recovery underway a sudden deluge of foreclosed homes would saturate the market resulting in the basic economic principal of supply and demand. More supply less demand, lower prices. Homebuyers would then sense the blood in the water and flock to these get them while they … [Read more...]