This is great news. CoreLogic tracks the “Shadow Inventory” levels. The Shadow Inventory are the potential homes to hit the market due to foreclosures and is tracked by delinquency rates, so it is a moving target and difficult to track accurately.
These are of course National figures, and we are still unsure how much of this will impact our market. I have been speculating that we have been purging a lot of our shadow inventory through Short Sales in our marketplace because of our Judicial Foreclosure process in Minnesota. I am still trying to come up with reliable shadow inventory figures for our local marketplace.
The nation’s residential shadow inventory as of July declined slightly to 1.6 million units, representing a supply of five months, according to a report from CoreLogic.
That’s down from 1.9 million units, a supply of six months, from a year ago, and follows a decline from April when shadow inventory stood at 1.7 million units.
“The steady improvement in the shadow inventory is a positive development for the housing market,” said Mark Fleming, chief economist for CoreLogic. “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.”
- CoreLogic:Jul US ‘Shadow’ Inv Of Homes 1.6m Vs 1.9m In Jul’10 (forexlive.com)