Yesterday I posted on the latest foreclosure activity for Chicago and the nation. However, a few days earlier CoreLogic released their shadow inventory report for July and the second quarter and it shows a continued decline in the number of homes that are either seriously delinquent, in foreclosure, or owned by banks. As you can see it’s been steadily trending downward since late 2009. According to CoreLogic shadow inventory is down 10.2% from last year.
A lot of the housing bears keep worrying about all the shadow inventory that’s out there but it’s clearly not as bad as it was a few years ago. And the REO property, which is waiting to be put on the market, is the smallest component and shrinking further. The components of the shadow inventory are as follows:
- Pending REO – 345K units
- Pending FC – 900 K units
- Serious delinquency – 1 MM units
45% of the nation’s entire shadow inventory is in just 5 states: Florida, California, New York, New Jersey, and guess the last one…….drumroll…….Illinois.