Shadow Inventory Could Take Four Years to Clear
The shadow inventory of homes with delinquent mortgages yet to move through the foreclosure process would take 47 months to clear at the current sales rate in the market, according to a newly-published housing finance report from Morgan Stanley (MS: 26.11 +1.40%).
The report which takes a broad overview of the market, shows the trend for originations flattening, as credit availability remains “negative” and the desire of Americans to form households is “neutral”.
The inaugural issue of Housing Market Insights is aptly titled: “The Long Road Home” as is generated by the investment bank's securitized credit department. Mixed with the above consumer sentiment and market realities, the analysts also note some hard figures.
via Shadow Inventory Could Take Four Years to Clear: Morgan Stanley « HousingWire.