The amount of shadow inventory in Colorado dropped 26 percent in the 12 months that ended in January, according to a CoreLogic report released today.
The drop was one of the largest declines in shadow inventory in the country and represents a national trend. Shadow inventory includes all delinquent mortgages, those in foreclosure and those homes that have gone through the foreclosure process but aren’t yet listed for sale with a multiple listings service.
The national supply of pending real estate owned properties has declined by 28 percent since its peak in January 2010, according to the CoreLogic report. There are 2.2 million housing units likely to go through foreclosure or that have already gone through foreclosure. AT current sales rates, it would take nine months to sell through the entire inventory.
“The shadow inventory is declining steadily as properties are moving through the distressed pipeline,” said Dr. Mark Fleming, chief economist for CoreLogic. “States like Arizona, California and Colorado are experiencing significant declines year-over-year in the stock of serious delinquencies, a positive sign for further improvement in the shadow inventory.”
Arizona saw its shadow inventory decline by 40 percent and it dropped by 33 percent in California.
“The shadow inventory continued to drop at double the rate in January from prior-year levels. At this point in the recovery, we are seeing healthy reductions across much of the nation,” said Anand Nallathambi, president and CEO of CoreLogic. “As we move forward in 2013, we need to see more progress in Florida, New York, California, Illinois and New Jersey which now account for almost half of the country’s remaining shadow inventory.”
Some of the states hardest hit by the recession and housing bubble still have large amounts of shadow inventory. Florida, California, New York, Illinois and New Jersey carried 44 percent of all distressed properties in the country