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CoreLogic: Shadow inventory still high

Wed, Dec 21, 2011

News

Shadow inventory numbers were down year-over-year in October, but were up from July numbers, according to data from real estate analytics firm CoreLogic.

Nationally, there are 1.6 million housing units in foreclosure or more than 90 days delinquent on mortgage payments. That represents a five-month supply of real estate inventory. That’s down from 1.9 million units last October, a seven-month supply.

The decrease in shadow inventory can be attributed to a number of distress property sales of both short sales from banks willing to work with owners and take a loss and sales of bank-owned properties, according to a release from Corelogic.

Shadow inventory numbers haven’t fallen off sharply, however, because there is a new flow of seriously delinquent loans..

CoreLogic estimates the current stock of properties in the shadow inventory by calculating the number of distressed properties not currently listed on multiple listing services.

More than a third of the nation’s shadow inventory is in Florida, California and Illinois. Those states along with New York, Texas and New Jersey account for half of shadow inventory.

The shadow inventory number is approximately four times what it was at the peak of the housing book in 2006. Shadow inventory is at the same level it reached in January of 2009.

CoreLogic estimates that shadow inventory accounts for about half of all visible listings.

“For every two homes available for sale,” according to CoreLogic, “there is one home in the ‘shadows.’”

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