How The Shadow Inventory Is Forcing Home Prices Higher

In recent weeks we’ve seen reports suggesting that real estate prices have begun to stabilize. What’s being said is not that prices are returning to the levels seen in 2007, but instead that declines in many communities have now slowed or stopped. Indeed, home prices are actually rising in some local markets. These reports are good news, but many people wonder: How is it possible for home values to stabilize while our vast “shadow inventory” of distressed and unsold real estate continues to grow? Read the entire December 2009 Market Trends Report

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