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Shadow Inventories Are Vanishing

The national residential shadow inventory is down 23 percent from a year ago.

The national residential shadow inventory fell to 1.7 million homes, down from 2.2 million in January 2013.
The national residential shadow inventory fell to 1.7 million homes, down from 2.2 million in January 2013.
According to CoreLogic’s February 2014 National Foreclosure Report , for the past three years, the shadow inventory has declined year-over-year and posted double-digit declines for the past 16 consecutive months as the housing market continues to heal.

Shadow inventory refers to distressed properties – homes that are seriously delinquent on their payments, are in foreclosure, or that were foreclosed and are still held by lenders. These are properties likely to be advertised for sale, but which are not currently listed on any multiple listing services (MLSs).

The national residential shadow inventory was 1.7 million homes in January – a 23 percent year-over-year drop from 2.2 million in January 2013. Foreclosures also continued to fall last month, dropping to 43,000 in February, 15 percent lower than year ago levels.

“Although there is good news that completed foreclosures are trending lower, the bigger news is the impressive decline in the foreclosure and shadow inventories,” said Mark Fleming, chief economist for CoreLogic. “Every state has had double-digit, year-over-year declines in foreclosure inventory, which is reflected in the $70 billion decline in the shadow inventory.”

Over the past year, shadow inventory has been falling at an average monthly rate of 41,000 units, CoreLogic reports. The states that hold 42 percent of all distressed properties in the nation are: Florida, California, New York, New Jersey, and Illinois.

Source: CoreLogic.com, April 3, 2014, available from "CoreLogic Reports U.S. Foreclosure Inventory Down 35 Percent Nationally From a Year Ago"; Internet; Accessed April 22, 2014.

Bill Burchard, Broker, REALTOR®
3B Realty
BRE# 01864774
Bus: 951-347-3818
Email: Bill@My3BRealty.com

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

roger craig April 22, 2014 at 11:57 AM
NBR reported on PBS that half the home sales in the US now involve cash purchases. Very few mortgage originations are taking place with a FICO score less than 720. The 'have-nots' are going to remain this way for a very long time....

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