Tags: shadow | inventory | 1.8 million | homes | delinquent | foreclosure

Data: 1.8 Million Homes Delinquent or in Foreclosure

Wednesday, 30 Mar 2011 09:51 AM

About 1.8 million homes that are delinquent or in foreclosure loom as additional supply for the struggling U.S. housing market, according to CoreLogic Inc.

The so-called shadow inventory amounted to a nine-month supply of properties as of January, about the same as a year earlier, the Santa Ana, California-based real estate data service said in a report today. The company measured homes ranging from 90 days delinquent on mortgages to properties seized by lenders in foreclosure proceedings.

Rising inventory threatens to further depress home values as sales slump. There was an 8.6-month supply of homes for sale on the open market in February, the National Association of Realtors reported March 21. A healthy market has about a six- month supply, according to the Realtors group.

The shadow inventory “illustrates the distressed pipeline that has to filter through the market before the market is normalized,” Sam Khater, chief economist for CoreLogic, said in a telephone interview from Vienna, Virginia. “It’s going to be a negative drag for some time.”

Home prices in 20 U.S. cities fell an average 3.1 percent from a year earlier in January, according to the S&P/Case-Shiller index. The decline was the biggest on a year-over-year basis since December 2009, the group said yesterday in New York.

CoreLogic, which has its own price gauge, estimates values will fall another 5 percent before bottoming, Khater said. The company’s index has dropped about 33 percent from its peak of April 2006, the company said in a March 10 report.

The shadow inventory in January was down from about 2 million properties a year earlier, according to CoreLogic. Mortgage modifications helped reduce the number, Khater said.

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About 1.8 million homes that are delinquent or in foreclosure loom as additional supply for the struggling U.S. housing market, according to CoreLogic Inc.The so-called shadow inventory amounted to a nine-month supply of properties as of January, about the same as a year...
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2011-51-30
Wednesday, 30 Mar 2011 09:51 AM
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