http://www.aei-ideas.org/2012/10/median-price-for-existing-h...

This article trumpets the 11+% increase in median home sale price suggesting he agrees with NAR economist.
MP: More evidence from today’s report on existing home sales and median prices that “we’re experiencing a genuine recovery” in the U.S. housing market, as NAR economist Lawrence Yun commented in the organization’s press release.

But what about this:
http://www.mcclatchydc.com/2011/10/16/127042/millions-of-hom...

Officially, there are 3.5 million homes for sale nationwide. But there are millions more lurking in the shadows — hidden neatly away on banks' balance sheets, stalled in foreclosure court proceedings or simply occupied by nonpaying owners as lenders wait months or years before taking action.

The housing market's ballooning shadow inventory — buoyed by a yearlong foreclosure slowdown — stands as the most menacing obstacle to the recovery of the residential real estate market.

In Miami, for example, there are about 200,000 shadow homes, dwarfing the 30,000 properties that are listed on the active market. Even as prices in Miami have shown signs of stability this year, an impending wave of foreclosures threatens to keep real estate values deflated.

"A lot of people don't understand how much inventory is set to come on line in the next 18 to 24 months," said Jack McCabe, the CEO of McCabe Research & Consulting in Deerfield Beach, Fla.

Banks are acting prudently in easing the number of inventory into the market to sustain pricing. Be it appears to me that we are at least a year from recovery of the residential housing market. IMHO more like 3 years.

The housing market's ballooning shadow inventory
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I think that's right - around here, anyway. There are plenty of pleople who have delayed the decision to move - like retirees, moving from large family homes to condos. That could put a glut of large houses on the market. And an obvious amount of empty houses that have been empty for a while, but aren't for sale. It's going to take a while to get rid of the idiotic housing policies of the mid 2000s.

arrete - Florida and other reitrement spots while be hardest hit because those who resided in the houses of the shadow market have most likely moved to a new, permanent abode with the angels (or devils). We were lucky to sell MIL's house while we could.

Florida and other reitrement spots while be hardest hit because those who resided in the houses of the shadow market have most likely moved to a new, permanent abode with the angels (or devils).

I'm wondering if banks would rather have the former owners continue to live in the foreclosed home rent free to prevent squatters or those who would break in & strip the house of appliances & copper piping?It would be beneficial for both parties. One gains rent free premises & the other party has someone to watch the property.