By Ian McKendry
WASHINGTON (MNI) – The pending supply of homes not listed on
multiple listing services decreased from 1.9 million in July 2010 to 1.6
million in July 2011, data analytics firm CoreLogic reported Tuesday.
CoreLogic said the decrease of 300,000 homes in the pending supply
or “shadow inventory” pipeline, brought down the months supply from six
months to five.
“The steady improvement in the shadow inventory is a positive
development for the housing market,” CoreLogic Chief Economist Mark
Fleming said in statement Tuesday.
However, Fleming added that continued price declines and a weak
labor will likely keep shadow inventory at elevated levels for some
time.
CoreLogic defines “shadow inventory” as properties that are either
seriously delinquent, in foreclosure or real estate owned (REO) and are
not listed on multiple listing services.
The report said of the 1.6 million properties in the shadow
inventory, 770,000 are seriously delinquent, 430,000 are in some stage
of foreclsoure and 390,000 are already in REO.
CoreLogic estimates that total shadow inventory combined with
visible inventory, or homes on multiple listing services was 5.4 million
in July 2011, down from 6.1 million in a year ago.
The National Association of Realtors, which reports homes that are
“visible” and listed for sale on multiple listing services said that
there were 3.7 million homes available for sale in July which would be a
supply of 9.5 months. A more recent report by the NAR said the months
supply of homes fell to 8.5 or 3.6 million homes in in September.
CoreLogic said the aggregate current mortgage debt outstanding of
shadow inventory stood at $336 billion in July versus $411 billion a
year ago.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$$AG$,M$U$$$,MAUDS$]
