Shadow inventory tops 2 million

A report from the data firm CoreLogic shows that families will have no shortage of homes to choose from when packing their moving boxes in the near future.

That's because the nation's shadow inventory - the supply of distressed, foreclosed or repossessed properties that have not yet hit the real estate market - reached 2.1 million units in August, according to the company's latest data. That equaled an 8 month supply of unlisted homes alone.

When coupled with the nation's 4.2 million-unit stock of visible inventory, which are actually on the sales market, that means there were 6.3 million unsold homes in the U.S. in August, equaling a 24-month supply. That was up from 17 months a year earlier and more than triple the rate seen in a healthy market - usually a six or seven-month supply.

"The weak demand for housing is significantly increasing the risk of further price declines in the housing market," said the firm's chief economist, Mark Fleming. "This is being exacerbated by a significant and growing shadow inventory that is likely to persist for some time."

Low prices are complicating matters for families selling their homes with plans on moving in the coming months. A separate CoreLogic reported said that national home prices were down almost 3 percent in September.
 

More News