The housing market has made significant strides in working off a bloated crisis-induced supply of foreclosures, but the “shadow inventory” — the number of homes that are delinquent by 90 days or more, in foreclosure or real estate owned (REO) – is still close to triple a healthy level, CoreLogic reported.
The shadow inventory had dropped by 26.4 percent year over year to 1.7 million homes as of October, while the monthly rate of completed foreclosures in November fell by 29 percent year over year to 46,000, according to the data aggregator. Meanwhile, the number of homes in some stage of foreclosure in November decreased by 34 percent year over year to 812,000, CoreLogic said.
But despite the all-around improvement, the volume of distressed properties is still far above a normal level. CoreLogic said a healthy level of shadow inventory is around 650,000 homes.