Mortgage Market Minute: March 2011

What Does Shadow Inventory Mean?

A term that refers to real estate properties that are either in foreclosure and have not yet been sold or homes that owners are delaying putting on the market until prices improve. Shadow inventory can create uncertainty about the best time to sell (for owners) and when a local market can expect full recovery. Also, shadow inventory typically causes reported data on housing inventory to understate the actual number of inventory in the market.
1 comment • Thomas Crate, CA DOC, NMLS #332624 • March 30 2011 12:54PM
Shadow Inventory of U. S. Homes Totals Nine-Month Supply
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Current residential shadow inventory as of January 2011 declined to 1. 8 million units, representing a nine months’ supply. This is down slightly from 2. 0 million units, also a nine months’ supply, from a year ago. --Corelogic, March 30, 2011 more
Real estate: It's time to buy again
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