The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds |

Real estate

Our network sites | Advanced

Originally published Friday, November 26, 2010 at 5:23 PM

Comments (0)     E-mail E-mail article      Print Print      Share Share

'Shadow inventory' of homes tops 2 million, says data aggregator

Weak demand for housing is "significantly increasing the risk of further price declines" a CoreLogic analysis says.

The "shadow inventory" of homes likely to be repossessed by lenders or already in their real-estate-owned (REO) inventory but not yet on the market reached 2.1 million units in August, up from 1.9 million a year ago, according to the latest analysis by data aggregator CoreLogic.

Because home sales also slowed, the shadow inventory represented eight months of housing supply, up from five months a year ago, CoreLogic said.

Weak demand for housing is "significantly increasing the risk of further price declines in the housing market," said CoreLogic Chief Economist Mark Fleming, who said the problem is exacerbated "by a significant and growing shadow inventory that is likely to persist for some time" because of the time it takes loan servicers to liquidate properties.

Combine the 2.1 million "shadow inventory" with the 4.2 million homes that were on the market in August, and the total supply of unsold homes was 23 months, about double the 11.6 months the National Association of Realtors (NAR) estimated in September.

(CoreLogic estimates the "visible inventory" of 4.2 million homes, which NAR's estimate was based on, represented 15 months of supply.)

A six- to seven-month supply of housing is considered a more normal balance of supply and demand.

CoreLogic estimates shadow inventory — sometimes called pending supply — by calculating the number of properties that are seriously delinquent (90 days or more) or in foreclosure that will, in all probability, end up REO.

E-mail E-mail article      Print Print      Share Share

More Real Estate

NEW - 10:00 PM
Reverse mortgages get more affordable, but be careful

UPDATE - 10:00 PM
Nation's Housing: Too much of a good deal?

UPDATE - 7:52 PM
Guardian to represent ailing Mastro in bankruptcy case

House members spar over efforts to avert foreclosures

NEW - 10:00 PM
Spring-cleaning tips for the garage

More Real Estate headlines...

News where, when and how you want it

Email Icon

No comments have been posted to this article.


Get home delivery today!



AP Video

Entertainment | Top Video | World | Offbeat Video | Sci-Tech