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.
The “huge shadow inventory,” reflecting mortgages already being foreclosed upon or now delinquent and likely to be, compares with 1.27 million in 2005, the analysts led by Laurie Goodman wrote today in a report. Assuming no other homes are on the market, it would take 1.35 years to sell the properties based on the current pace of existing-home sales, they said.
Chart of the Day
Chart of the day has an interesting graph, which you can see by clicking here.
Clearly, from a charting perspective , house prices will easily fall an additional 25%.
The Real Estate market is FAR from ending it's decline, expect homes across the board to decrease 20 to 50% from HERE over the next 3 years. (depending on location).