People who are worried about the housing market say things like: “The banks are holding 2 years of shadow inventory.” or “There’s a new wave of foreclosures coming.”
Pending foreclosures are on a very steady decline.
Some foreclosures in a metro area as big as ours is normal and to be expected. When the amount is proportionate the effect on supply, demand and prices is very limited. In 2009 the impact was massive because the number of distressed sales was so disproportionate.
Prices have risen. Far less people are in a negative equity position and the low inventory means almost any house can be sold in a short period of time.
Time to forget about foreclosures for a while as a strong market indicator.