A couple housing stories … the first provides analysis from Barclays analysts that suggests distressed sales will stay elevated for some time. The second is from Diana Olick about house prices and the tax credit.
From Jon Prior at HousingWire: Shadow Inventory To Peak in Summer of 2010: Barclays
Barclays defines the shadow inventory of foreclosures as loans in 90-plus day delinquency or already in the foreclosure process. …
The shadow inventory should reach its height in the summer in 2010 before falling gradually as the market absorbs 130,000 distressed properties per month, according to the report. Over the next three years, analysts forecast 4.7m distressed sales with 1.6m in 2010, another 1.6m in 2011 and 1.5m in 2012.