The elusive nature of shadow inventory

By Marcie Geffner - California Real Estate magazine

The term "shadow inventory" evokes scary images, armies of darkened houses hidden in the foothills ready to march across the land, bringing destruction and misery to everyone in their path.

The notion is fanciful, but does a shadow inventory really exist, and if so, what are its implications for Realtors?

One useful definition comes from CoreLogic. Sam Khater, a senior economist at the property data and analytics firm in Santa Ana, says shadow inventory is "the pending supply of distressed property that will hit the market."

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