Ever since the notorious subprime mortgage meltdown and subsequent collapse of the housing market in 2007-2008, many of the nation’s lenders have found themselves loaded down and plagued with a plethora of foreclosed real estate holdings.
Not wanting to create an influx of inventory in what had been an unambiguous buyer’s market for several years, lenders were hesitant to overstep the delicate tenets of supply and demand for fear that such a step would further reduce property values, diminishing their ability to recoup housing costs and possible ROI.
This “retreat” from the market resulted in a surplus of what is commonly known as the “shadow inventory.” Frustrated with how the market’s been trending, both buyers and lenders are just now beginning to actively seek out real estate transactions, but their previous inactivity has resulted in a stalemate of sorts, leaving the market sluggish and in desperate need of a kick-start. Read more ....
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