With all the talk of excess inventory and flood of foreclosures, the idea of a looming housing shortage sounds unrealistic if not fanciful.
After all, the most recent data from the National Association of Realtors (NAR) out last week showed a 5.1% decline in existing home sales in June. Meanwhile, total housing inventory increased 2.5% to four million homes available for sale, an 8.9-month supply, up from an 8.3-month supply in May.
Foreclosures, too, are an issue with a vast backlog of distressed properties and underwater loans sitting just below the surface, according to RealtyTrac, an online foreclosure marketplace. The company forecasts that more than three million properties will get hit with foreclosure filings by the end of the year.Read it all: A Housing Shortage on the Horizon?