Shadow Inventory Of Homes Increases
SANTA ANA, Calif. – The “shadow inventory” of homes that could reach market increased to 2.1 million units in August, an 11% jump from the same period a year ago, according to new figures provided by CoreLogic.
CoreLogic Economist Mark Fleming warned that the “weak demand” for housing nationwide is “significantly increasing the risk of further price declines in the housing market.”
Shadow inventory includes homes where the mortgage is 90 days or more late, is in foreclosure already, or REO on the books of a financial institution. (These REO properties are not currently listed as being for sale.)
Combined with new and existing homes that are for sale, CoreLogic reported says the total “visible” inventory of homes that can be purchased stood at 6.3 million units in August, compared to 6.1 million in August 2009.
Based on the current sales pace, that means the inventory can last 23 months. In a normal housing market, six to seven months supply is considered average. This story was first reported by National Mortgage News, an affiliate of Credit Union Journal.