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For some business during the down cycle of the housing crisis, a wave of foreclosures lurking in the nation's shadow inventory – the supply of homes either seriously delinquent or in the foreclosure process but not yet listed – can be seen in a somewhat positive light, as it presents the prospect of increased business in the near-term.

One such company is Bank Foreclosures Sale, a foreclosure listing service that is gearing up for the wave and the influx of foreclosure listings that will come out of an estimated 2.4m foreclosures in the shadow inventory, which may pull prices down another 10% in 2010.

"It appears that we may be seeing a surge of 'shadow inventory' properties appear on the market," said Simon Campbell, real estate analyst for Bank Foreclosures Sale, in a press statement.

It means more listings for Bank Foreclosures Sale, as well as potential investment opportunities. But it also means a glut of inventory that may depress house prices further.

Campbell added: "Until we see a reduction in the number of foreclosures, we cannot get too hopeful about restoring housing industry stability."

The warning comes after First American CoreLogic, the property and ownership information provider subsidy of The First American Corp. (FAF: 14.82 0.00%), estimated in mid-December a 1.7m-unit housing supply was ready to hit the market as of September 2009.

But when this wave of foreclosures — however large it may turn out to be — finally floods the market, some industry sources suggest the competitive bidding process will drive up house prices. HousingWire's sources have said some local markets may even have over-corrected in terms of prices, to the point that even foreclosure sales prices will appear to raise the median in many areas.

The US housing market is, therefore, far from a second collapse, according to real estate data and analytics company Radar Logic. A December report suggests house values could recover in spring 2010 as the glut of foreclosures attract a blend of owner-occupants and investors.

Write to Diana Golobay.

The author holds no relevant investment positions.