I just came across this report and it validates everything I've been saying for the past year.
Amherst Securities just published a white paper entitled "Housing Overhang/Shadow Inventory = Enormous Problem", and per their numbers, the housing market is FAR from "recovery".
Rather than recap the blog post or the white paper (which I HIGHLY recommend you read) I simply have this to say:
The next time you are speaking with an REO asset manager at a bank, any bank, ask them about this report. Send them this report. Get them to CONFRONT the numbers in this report.
Maybe then we can shake these banks into reality, and they will start releasing their inventory in the volume and pricing that the private markets (and my clients) will pay.