I admit to loving all the reports about lower inventories across the country.

If I were a managing broker/owner or a really sharp agent, I would be advising sellers to make hay while the sun is shining. In other words, price to sell and get out of it before the ‘shadow inventory’ hits – probably end of spring-first of summer.

It won’t be pretty. Banks believe that they have their paperwork in order after the courts stopped a bunch of foreclosesures in mid 2010. Last November, the first wave of foreclosure letters went out (4m). In most states it takes 6-8 months before we see the results of these letters – which means a rise in inventories – again.

So get your inventory priced to sell and get ready for what’s ahead.

Don’t underestimate what it will take to come through this ‘long slump’.