CoreLogic: Shadow Inventory Jumps More Than 10 Percent in One Year, Pushing Total Unsold Inventory to 6.3 Million Units

CoreLogic: Shadow Inventory Jumps More Than 10 Percent in One Year, Pushing Total Unsold Inventory to 6.3 Million Units
CoreLogic Shadow Inventory

CoreLogic estimates shadow inventory, sometimes called pending supply, by calculating the number of properties that are seriously delinquent (90 days or more), in foreclosure and real estate owned (REO) by lenders and that are not currently listed on multiple listing services (MLSs). Shadow inventory is typically not included in the official metrics of unsold inventory.

According to CoreLogic, the visible supply of unsold inventory was 4.2 million units in August 2010, the same as the previous year. The visible inventory measures the unsold inventory of new and existing homes that were on the market. The visible months’ supply increased to 15 months in August, up from 11 months a year earlier due to the decline in sales during the last few months.

The total visible and shadow inventory was 6.3 million units in August, up from 6.1 million a year ago. The total months’ supply of unsold homes was 23 months in August, up from 17 months a year ago. Although it can vary and it depends on the market and real estate cycle, typically a reading of six to seven months is considered normal so the current total months’ supply is roughly three times the normal rate.

Mark Fleming, chief economist for CoreLogic commented, “The weak demand for housing is significantly increasing the risk of further price declines in the housing market. This is being exacerbated by a significant and growing shadow inventory that is likely to persist for some time due to the highly extended time-to-liquidation that servicers are currently experiencing.”

CoreLogic Visible and Pending Inventory

The second graph from CoreLogic shows the total visible and pending inventory. Even though the visible inventory has declined slightly from the peak in 2007, the total inventory is at close to an all time high of 6.3 million units.

So, you ready to buy a fraudclosure?

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4closureFraud.org

Comments
6 Responses to “CoreLogic: Shadow Inventory Jumps More Than 10 Percent in One Year, Pushing Total Unsold Inventory to 6.3 Million Units”
  1. Ali says:

    Corelogic is full of shit! They are now working for BOA. Their name was on the last paperwork I recieved from Bank from Hell.

  2. housemanrob says:

    I BET THAT THE SHADOW INVENTORY CASTS A MUCH LARGER SHADOW THAN 10%. THE RISK OF INSOLVENCY GUARANTEES THAT!

  3. MisterKeitel says:

    I’ve learned in home buying class that an unlived in house slowly starts to deteriorate over time. If no one is living in it, tending to it, turning on the heat and water once in a while, the pipes freeze up and bust, wild animals find a home in the house. And you know the bank that owns the house is not going to do jack to keep the house up. The bank is not even going to pay all the taxes and fees for the house. The local or state government tax official that tries to collect will get the same run around about who really owns the house. I saw a TV story about how they were bulldozing homes in Detroit in and attempt to shrink the market up there and drive up the property values. I’m guessing that before this is all over, we will see that sort of Final Solution enacted all over the US. Just my guess.

  4. Susan DeSimone says:

    ” the American people ” are walking away from the fraudulent mortgages at record numbers. WE may not understand, which is what are government likes, but we are fighting back. As the word gets out we will be in larger numbers. They have you all brain washed that if the crooked banks go belly up our country will go under. Let them pay out till their broke. Other banks will take over and be happy to get your money in their hands. For the sake of the historical integrity of our country, this massive home mortgage fraud and clouded Titles must not be swept under the carpets :a coverup” will destroy this counrty more. Send letters to your Senators.

    Susan

  5. Wild Bill says:

    “Shadow inventory is typically not included in the official metrics of unsold inventory.”

    Just wondering who creates the “official metrics” in this country? Does not the fact that these “official metrics” understate the true amount of unsold inventory by 50% render them worthless?

    Nobody cares. Most of America could not tell you one thing about how our banking system works. Go ahead, ask someone around you what a fiat money system is, what the eventual effects of compound interest are, or how the Federal Reserve functions on a daily basis.

    If you don’t fully understand these issues, then you definitely are part of whom the politicians refer to as “the American people.” They know how these things work, and you don’t. And still you continue to vote for them.

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