According to information and analytics services firm CoreLogic, the current U.S. residential shadow inventory as of January 2012 was 1.6 million units, which is down from 1.8 million units in January 2011 but relatively flat compared to October 2011 data.
Currently, the flow of new seriously delinquent (90 days or more) loans into the shadow inventory has been offset by the roughly equal flow of distressed sales (short and real estate owned), the company notes.
‘Almost half of the shadow inventory is not yet in the foreclosure process,’ says Mark Fleming, chief economist for CoreLogic. ‘Shadow inventory also remains concentrated in states impacted by sharp price declines and states with long foreclosure timelines.’
Of the 1.6 million properties currently in the shadow inventory, 800,000 units are seriously delinquent (3.1 months' supply), 410,000 are in some stage of foreclosure (1.6 months' supply) and 400,000 are already in REO (1.6-months' supply). Florida, California and Illinois account for more than a third of the total shadow inventory.