Shadow inventory is down 10%

[USAPlaceExpert]

`Broadly speaking, the shadow inventory continued to shrink in July,` said Anand Nallathambi, president and CEO of CoreLogic. `The reduction is being driven by a variety of resolution approaches. This is yet another hopeful sign that the housing market is slowly healing.`


That`s right! CoreLogic, the leader in data collection on the real estate market said this is a, `hopeful sign that the housing market is slowly healing.`


This trend is something that we at the U.S. Property Shop have been noting for at least the last 3 months. Being based in Canada and understanding that Canadians are buying much real estate in sunshine states such as Florida or Arizona, we know that the shadow inventory has been decreasing in those states which have the most of those types of inventory.


Here are some more interesting stats from the report,

As of July 2012, shadow inventory fell to 2.3 million units or six-months` supply and represented just over three-fourths of the 2.7 million properties currently seriously delinquent, in foreclosure or in REO.


As of July 2012, Florida, California, Illinois, New York and New Jersey make up 45 percent of all distressed properties in the country.

BUT WAIT, THERE`S MORE! If you click here for the official release from CoreLogic

 

[Pheenix]

Thanks John

Interesting read for anyone with even half an eye on the US market.



I have read a couple articles about the rise in the average value amount due for mortgages in arrears. The suggestion is that banks are also slowing down the first step in the foreclosure process and therefore managing the 'inventory' in this way too (not in the process so not in the shadow). I was unsure of the wording of the Corelogic summary whether this factors in - I don't think so.



Do you have any information on this and the number of 'underwater' mortgages and the stablizing effect they are having in various markets (i.e. people not selling because they can't - so recuding the overall number of homes for sale)? What sort of move in prices might be needed to start clearing these up as well?