Shadow
inventory, as defined by CoreLogic, refers to properties that are seriously
delinquent by 90 days or more, in the foreclosure process, and properties that
have completed the foreclosure process but not yet have been listed for
sale.
CoreLogic
reports that “the flow of new seriously delinquent (90 days or more) loans into
the shadow inventory has been approximately offset by the equal volume of
distressed (short and real estate owned) sales.”
In
April, shadow inventory was at 1.5 million units compared to 1.8 million units
in April of last year.
"Since
peaking at 2.1 million units in January 2010, the shadow inventory has fallen by
28 percent,” Mark Fleming, CoreLogic’s chief economists, says. “The decline in
the shadow inventory is a positive development because it removes some of the
downward pressure on house prices.”
Serious
delinquencies are the main driver of shadow inventory, CoreLogic notes. Serious
delinquencies declined the most in the following cities:
•Arizona:
-37%
•California: -28%•Nevada: -27.4%
•Michigan: -23.7%
•Minnesota: -18.1%
Source: CoreLogic
•California: -28%•Nevada: -27.4%
•Michigan: -23.7%
•Minnesota: -18.1%
Source: CoreLogic