Shadow Inventory Down 28% from 2010 Peak

CoreLogic, a leading residential property information, analytics and services provider, reported recently that the overall shadow inventory is down 28 percent from its peak in January 2010, when it reached 3 million homes. Current residential shadow inventory as of January 2013 was at 2.2 million units, representing a supply of nine months. This figure represents an 18-percent drop from January 2012, when shadow inventory stood at 2.6 million units.

CoreLogic estimates the current stock of properties in the shadow inventory, also known as pending supply, by calculating the number of properties that are seriously delinquent, in foreclosure and held as real estate owned (REO) by mortgage servicers, but not currently listed on multiple listing services (MLSs).

Data Highlights as of January 2013:

• As of January 2013, shadow inventory was at 2.2 million units, or nine months’ supply, and represented 85 percent of the 2.6 million properties currently seriously delinquent, in foreclosure or REO.

• Of the 2.2 million properties currently in the shadow inventory (Figures 1 and 2), 1 million units are seriously delinquent (4.1 months’ supply), 798,000 are in some stage of foreclosure (3.2 months’ supply) and 342,000 are already in REO (1.4 months’ supply).

• The value of shadow inventory was $350 billion as of January 2013, down from $402 billion a year ago and down from $381 billion six months ago.

• Over the twelve months ending January 2013, serious delinquencies, which are the main driver of the shadow inventory, declined the most in Arizona (40 percent), California (33 percent), Colorado (27 percent), Michigan (25 percent) and Wyoming (23 percent).

• As of January 2013, Florida, California, New York, Illinois and New Jersey carried 44 percent of all distressed properties in the country. Florida continues to account for 16 percent of the nation’s distressed properties.


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