Shadow Inventory Keeping Transactions Down

According to Dr Mark Dotsour, Chief Economist, Real Estate Center at Texas A&M University; commercial real estate transactions are down 80% over the last three years and no relief in sight till banks get rid of their "Shadow Inventory". Dr. Dotsour spoke to this at both the CCIM CRE Forecast in February and First American Title Multi Family Forecast March 4th both in Houston. This "Shadow Inventory", with no known value, is being held by banks with the OK of the Federal Government. It seems that there could be 700 to 1,000 bank failures if this inventory was marked to market. But until that happens transactions will remain low.