The shadow inventory fell in October 2012 to 2.3 million units, representing a supply of seven months, according to new data from Irvine, Calif.-based CoreLogic. This represents a 12.3% drop from October 2011, when shadow inventory stood at 2.6 million units.
As of October 2012, the shadow inventory represented 85% of the 2.7 million properties currently seriously delinquent, in foreclosure or in REO. The dollar volume of shadow inventory was $376 billion during the month, down from $399 billion a year earlier.
‘The size of the shadow inventory continues to shrink from peak levels in terms of numbers of units and the dollars they represent,’ says Anand Nallathambi, president and CEO of CoreLogic. ‘We expect a gradual and progressive contraction in the shadow inventory in 2013 as investors continue to snap up foreclosed and REO properties and the broader recovery in housing market fundamentals takes hold.’