‘Shadow inventory’ still growing in some markets

An analysis of "shadow inventory" published by Standard & Poor's Ratings Services showed considerable variations in 20 major markets that could indicate where prices will stabilize or decline.The analysis -- which did not include homes purchased with mortgages backed by Fannie Mae and Freddie Mac -- concluded that the time needed to clear shadow inventory ranged from a low of 18.5 months in the metro Phoenix area to a high of 103 months in the greater New York City area.The report estimated of the months' supply of shadow inventory in the 20 major markets included in the Standard & Poor's/Case-Shiller Home Price Indices, defining shadow inventory as homes that are 90-plus days delinquent, in foreclosure, or bank-owned (REO) but not yet on the market. The report also assumed that 70 percent of recently "cured" loans would ultimately redefault.In all other markets nationwide, the report concluded it will take an average of 34 months to sell those homes at the ...