The overhang of unsold housing inventory will probably remain an issue for builders and buyers alike. CoreLogic Inc. in March estimated about 1.8 million homes were more than 90 days delinquent, in foreclosure or bank-owned, a so-called "shadow inventory" set to add to the unsold supply of 3.87 million previously owned homes on the market at the end of April.
Builders are gloomy and project demand will remain depressed into next year, Bill Wheat, chief financial officer of D.R. Horton Inc., told a housing conference in New York on May 11.
"We still see housing demand at very weak levels," Wheat said. "It could still be a struggle in 2012."