The number of distressed residential housing properties continues down as the value of the shadow inventory has dropped $70 billion in the past year reflecting the progress states are making on the foreclosure front, according to a new report from CoreLogic. Foreclosures are down 35% year over year.
Shadow inventory includes properties being held back by a lender and not yet put on the market, or some residential properties in which the mortgage is 90 days delinquent or more.
“Although there is good news that completed foreclosures are trending lower, the bigger news is the impressive decline in the foreclosure and shadow inventories,” Dr. Mark Fleming, chief economist for CoreLogic, said in a release from PRNewswire. “Every state has had double-digit, year-over-year declines in foreclosure inventory, which is reflected in the $70 billion decline in the shadow inventory.”
“The stock of seriously delinquent homes and the foreclosure rate are back to levels last seen in the final quarter of 2008,” said Anand Nallathambi, president and CEO of CoreLogic, in the release. “The shadow inventory has also declined year over year for the past 3 years as the housing market continues to heal, including double-digit declines for the past 16 consecutive months.” Click on the chart below to enlarge.
Shadow Inventory Highlights:
- The value of shadow inventory was $254 billion as of January 2014, down from $324 billion a year ago and down from $289 billion six months ago.
- As of January 2014, year-over-year inventory of seriously delinquent homes decreased in all states by double digits. Twenty-four states experienced year-over-year declines in serious delinquency by at least 20 percent.
- The shadow inventory is down 22 percent compared to January 2013.
- Over the 12 months ending January 2014, shadow inventory has been decreasing at an average monthly rate of 41,000 units.
- As of January 2014, Florida, California, New York, New Jersey and Illinois carried 42 percent of all distressed properties in the country. Florida continues to account for 15 percent of the nation’s distressed properties.