I have mentioned shadow inventory a few times on the radio and in other articles and recently the SF Chronicle published a fantastic article about this topic.

Shadow inventory is homes that will be for sale [either foreclosures or new construction] but are not on the market. The fear is that there could be a big wave of foreclosures put on the market or they will slowly come out and delay recovery in some areas.

To be clear – foreclosures are an issue in the suburban areas of Portland Metro but not as much in the core of the city where inventory remains balanced.

Full Article Here with Graphs and Charts

Locally by the Numbers:

Here is a look at the number of homes owned by banks according to forclosure.com and what is actually listed on RMLS as active or pending by county.

Multnomah
Owned: 876
Active/Pending 400
Shadow Inventory: 476

Clackamas:
Owned: 596
Active/Pending 273
Shadow Inventory: 323

Washington:
Owned: 590
Active/Pending 262
Shadow Inventory: 328

Clark:
Owned: 951
Active/Pending 364
Shadow Inventory: 587