The forecast could be dim for the Sunshine State as a looming market of distressed and discounted homes threatens a struggling recovery.

According to a new report from the National Association of Realtors, Florida’s “shadow inventory” ranks No. 1 in the nation with 441,461 homes statewide. California is in second place with 227,961 homes.

Shadow homes are ones in limbo — bank repossessions, those with delinquent loans, and ones in foreclosure that are not yet listed for resale.  Read More.