A number of analysts have speculated as to when the housing market recovery will occur, but one industry experts says he might have the answer.
Department of Housing and Urban Development Secretary Shaun Donovan revealed on MSNBC's "Morning Joe" that the nation's shadow inventory will hold back a more rapid recovery until it is more adequately addressed.
"The one place where we continue to see struggles is looking for a consistent strong recovery in house prices," said Donovan. "We're seeing that in a lot of markets. But in the most distressed markets … it's these foreclosures that are still coming on the market – what we call the shadow inventory – that are dragging down prices in a lot of places."
However, what Donovan had to say wasn't all negative, as he recognized the highest winter sales rate recorded in more than five years. In addition, he also pointed out that current homeowners falling into delinquency also dramatically plummeted.
As the growth rate of the nation's shadow inventory continues to slow, the available distressed properties could provide some unique home buying opportunities for entry-level homebuyers.
