Shadow Inventory refers to homes in a state of limbo, typically distressed homes that are in the foreclosure process with the banks but have not hit the market yet as a foreclosure sale. Although home sales are picking up we can still expect to see a steady number of bank-owned properties to hit the market in the next few years.
This may be good news for investors and bargain hunters as prices are artificially depressed by the influx of these homes hitting the market, and banks trying to unload them and minimize their losses. The new methodology implemented by CoreLogic may be telling of the future rollout of more foreclosed homes.
[info]”The nation’s shadow inventory fell to 2.3 million units in July, down 10.2 percent from last July, according to a monthly report, using a new methodology, from real estate data firm CoreLogic released today.”
(See Full Story) [/info] [info]“Homes with seriously delinquent loans attached to them made up 1 million of July’s shadow inventory. The balance included 900,000 homes in some stage of foreclosure and 345,000 bank-owned properties. The 2.3 million total units represent a six-month supply, the report noted.”
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