'Shadow' Housing Inventory Not So Threatening

New York, NY, Aug. 15, 2012 -- Despite predictions that the "shadow inventory" of homes will continue to depress housing prices for many years, the Wall Street Journal is reporting there's reason to be more optimistic.

The Journal reported that there are several reasons why the shadow inventory isn’t as threatening as some predictions might indicate: It’s concentrated in a handful of markets and isn’t inherently a national phenomenon.

In addition improved demand, particularly from investors, is acting as a counterweight.

Also, the housing vacancy rate is low due to depressed new home construction over the past few years.