said today that the shadow inventory or pending supply of homes at the end of
July consisted of 1.9 million homes with an approximate market value of $293
billion. The shadow inventory is a measure of the
number of properties that are seriously delinquent, in foreclosure or held as
REO by mortgage servicers, but not currently listed on multiple listing
services (MLSs) and is not typically included in official estimates of unsold
the present rate of sales this inventory represents a 3.7 month supply. In July 2012 there were 2.4 million homes in
the shadow inventory and at its peak in 2010 there were 3 million. The recent figure represents decreases of 22
percent and 38 percent respectively from those figures. The
inventory consisted of 874,000 properties that were seriously delinquent (1.8
months' supply), 661,000 in some stage of foreclosure (1.3 months' supply) and
318,000 that were already in REO (0.6 months' supply).
CoreLogic said foreclosures were
completed in August at a rate only two-thirds that of a year earlier. There were 48,000 completed foreclosures
during the month compared to 72,000 in August 2012, a decrease of 34
percent. The number was up 1.3 percent
from the 47,000 completed in July.
CoreLogic said that, despite the
significant year-over-year drop in foreclosures they are still running at more
than double what might be considered a "typical" rate. The company's analysis points to the 2000 to
2006 period during which completed foreclosures averaged 21,000 per month
nationwide. There have been
approximately 4.5 million homes lost to foreclosure since the housing crisis
began in September 2008.
As of August there were approximately
939,000 homes in the national foreclosure inventory, i.e. homes in some stage
of foreclosure. This is a 33 percent
drop from the 1.4 million homes in the inventory in August 2012. Month over month, the foreclosure inventory
was down 3.2 percent. The inventory
represents 2.4 percent of all homes with a mortgage; a year earlier the
inventory was at 3.3 percent.
The serious delinquency rate, that
is homes that are 90 days or more past due, was 5.3 percent at the end of
August or 2.1 million mortgages. This is
the lowest serious delinquency rate since December 2008.
"The foreclosure inventory continues
to improve, as exhibited by these recent numbers," said Dr. Mark Fleming,
chief economist for CoreLogic. "A surge in completed foreclosures and a
rise in the foreclosure inventory is unlikely given continued house price
improvements and shortages of supply in many markets."
"Over the past year, the value
of the U.S. shadow inventory dropped by $87 billion-a sign of increased
normalcy in the housing market," said Anand Nallathambi, president and CEO
of CoreLogic. "With a year-over-year decrease of 22 percent in July, the
shadow inventory has now declined steadily for 10 consecutive months."
Five states, Florida, Michigan,
California, Texas, and Georgia accounted for almost half of all completed
foreclosures over the 12 months ending in August. Florida had 111,000 completed foreclosure
actions, nearly double the number completed in number two state Michigan.
The highest foreclosure inventory is held in
Florida (7.9 percent), followed by New Jersey (6.2 percent), New York (4.9
percent), Maine (4.0 percent) and Connecticut (3.9 percent).