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Shadow inventory impacts vary by state

NAR analysis: New York, New Jersey, Florida taking longer to clear

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A state-by-state breakdown of "shadow inventory" suggests that while Nevada, Arizona and California have the highest foreclosure rates in the nation, buyers will clear those properties from the market at a faster rate than in most other states.The analysis, by National Association of Realtors Research Economist Selma Hepp, shows the impact of shadow inventory is likely to linger for much longer in states like New York, New Jersey, Florida, Illinois and Washington, where distressed properties make up a smaller percentage of sales.In New Jersey, where distressed properties have accounted for only about one in five sales during the past year, Hepp estimates that it will take 51 months to clear the state's shadow inventory. The analysis showed New York may have 34 months of shadow inventory in the pipeline, Florida 29 months, Washington 28 months and Illinois 25 months.With distressed properties making up nearly 70 percent of sales in Nevada, however, the Silver State has the low...