Care of Barry Ritholtz’s The Big Picture

Now for the really scary part: Shadow Inventory. The glut of homes for sale is likely much larger than reported. Inventory counted by the Realtors group only includes foreclosures that have been listed on the multiple listings service. The enormous number of REOs, auction properties, defaults and foreclosures not listed ARE NOT IN THIS DATA.

Ouch. Note that as foreclosures sore, this shadow inventory will become a larger part of the total inventory.