Housing Inventory: Hard and Soft Shadows

The “soft shadow” inventory in residential real estate is larger than the total of current inventory and the “hard” shadow. Resolution of the soft inventory is uncertain; it depends on how the economy goes in the coming years. If the recovery continues to bypass Main Street (read that as employment), a significant amount of soft shadow will enter the active inventory. In an improving economy a significant part of the soft shadow will simply fade away.

Mediocre Home Sales Continue in May 2011

If one has low expectations, any data will seem better. May 2011 existing homes sales continues its mediocre start to the 2011 buying season. The reality is that home sales in May 2011 is not as bad as it appears, and beginning in July 2011 – will not be as good as it will comparatively appear.

Case-Shiller Joins the Club – All Indices In Double Dip Territory

Home prices are increasing, but all home price indices released through the end of May 2011 show this increase is coming from a lower level than a year ago. Case-Shiller home price index entered double dip territory with its March 2011 index surpassing the recession low point set in April 2009 , all other major home price indices are already in double dip territory.