The number of homes in some stage of foreclosure, but not yet listed on the multiple listing services dropped nationally in July.
CoreLogic , an information and analytics company , reported that so-named shadow inventory dropped slightly from 1.9 million in 2010 to 1.6 million in the same time this year and down from 1.7 million in April.
The modest decline results from properties going into delinquency at a slower pace than they are being listed for sale, according to the report.
“The steady improvement in the shadow inventory is a positive development for the housing market,” chief economist for CoreLogic Mark Fleming said in a statement. “However, continued price declines, high levels of negative equity and a sluggish labor market will keep the shadow supply elevated for an extended period of time.”
Of the 1.6 million properties currently in the shadow inventory, 770,000 units are seriously delinquent (2.2-months’ supply), 430,000 are in some stage of foreclosure (1.2-months’ supply) and 390,000 have already been foreclosed upon.
As of July 2011 the shadow inventory is 22 percent lower than it was at the peak in January 2010 when it was at 2 million units.
The total shadow and visible inventory was 5.4 million units in July 2011, down from 6.1 million units a year ago. The shadow inventory accounts for 29 percent of the combined shadow and visible inventories.
The aggregate current mortgage debt outstanding of the shadow inventory was $336 billion in July 2011, down 18 percent from $411 billion a year ago