Defining the new normal for housing

The market is suffering from pent-up supply and demand constraints, writes chief economist at CoreLogic Mark Fleming. On the supply side, Fleming finds three main factors contributing to the faltering recovery in housing: shadow inventory that is now more concentrated in states where courts process foreclosures, an interest rate lockout that deprives homeowners of the incentive to sell, and the high share of mortgaged homes without much equity.

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