KIRO Radio's Tom Kelly digs deep into the Puget Sound real estate market
Real Estate

Distressed property shadow inventory continues to drop

Predictions that the nation's shadow inventory would rapidly rise have yet to materialize, as the shadow inventory continues to show signs of dropping, according to the latest report reflecting July data from CoreLogic.

The nation's shadow inventory fell 10.2 percent in July compared to a year ago.

Shadow inventory reflects the number of distressed homes that have not yet been listed on the multiple listing services but will likely reach the market soon. It does not, however, take into account the number of owners current on their mortgages who would sell if they could break even on a home sale.

"Broadly speaking, the shadow inventory continued to shrink in July," says Anand Nallathambi, president and CEO of CoreLogic. "The reduction is being driven by a variety of resolution approaches. This is yet another hopeful sign that the housing market is slowly healing."

As of July, 2.3 million properties were considered in residential shadow inventory, which represents a six-month supply. Of those properties, 1 million are from seriously delinquent loans; 900,000 are in some stage of foreclosure; and 345,000 are REOs, according to CoreLogic's report.

Tom Kelly, Real Estate Today
Tom Kelly has been a professional journalist for 36 years. He served The Seattle Times for 20 years, many as Real Estate Editor.
Top Stories

  • Any Means Necessary
    Ricardo Lockette takes playing time with the Seahawks over pride

  • Moving Up
    How Bellevue will handle students who transfer from 'failing' schools
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Listen to the show
Hear Real Estate Today on KIRO Radio
Join Tom Kelly every Sunday at 9am on KIRO Radio to talk Puget Sound real estate.

Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.