Report: Shadow Inventory At 1.7 Million In 3Q

A report conducted by First American CoreLogic found there was a 1.7-million-unit pending supply of residential housing inventory, an increase from 1.1 million a year earlier. Pending supply, sometimes referred to as “shadow” inventory, estimates real estate owned (REO) by banks and mortgage companies, as well as real estate that is at least 90 days delinquent. Generally, shadow inventory is not included in measures of unsold inventory. At the current sales rate, the pending supply is 3.3 months, a rise from 2.4 months a year ago, according to the report. The months’ supply measures how quickly the inventory will deplete given the current sales rate.

Source: First American CoreLogic