CoreLogic Reports Shadow Inventory Down 28 Percent From 2010 Peak
-- Serious Delinquencies Falling Fast in Western States --
IRVINE, Calif., March 26, 2013
IRVINE, Calif., March 26, 2013 /PRNewswire/ -- CoreLogic (CLGX), a leading
residential property information, analytics and services provider, reported
today that the overall shadow inventory is down 28 percent from its peak in
January 2010, when it reached 3 million homes. Current residential shadow
inventory as of January 2013 was at 2.2 million units, representing a supply
of nine months. This figure represents an 18-percent drop from January 2012*,
when shadow inventory stood at 2.6 million units.
To view the multimedia assets associated with this release, please click:
CoreLogic estimates the current stock of properties in the shadow inventory,
also known as pending supply, by calculating the number of properties that are
seriously delinquent, in foreclosure and held as real estate owned (REO) by
mortgage servicers, but not currently listed on multiple listing services
(MLSs). Transition rates of "delinquency to foreclosure" and "foreclosure to
REO" are used to identify the currently distressed unlisted properties most
likely to become REO properties. Properties that are not yet delinquent, but
may become delinquent in the future, are not included in the estimate of the
current shadow inventory. Shadow inventory is typically not included in the
official reporting measurements of unsold inventory.
"The shadow inventory continued to drop at double the rate in January from
prior-year levels. At this point in the recovery, we are seeing healthy
reductions across much of the nation," said Anand Nallathambi, president and
CEO of CoreLogic. "As we move forward in 2013, we need to see more progress in
Florida, New York, California, Illinois and New Jersey which now account for
almost half of the country's remaining shadow inventory."
"The shadow inventory is declining steadily as properties are moving through
the distressed pipeline," said Dr. Mark Fleming, chief economist for
CoreLogic. "States like Arizona, California and Colorado are experiencing
significant declines year over year in the stock of serious delinquencies, a
positive sign for further improvement in the shadow inventory."
Data Highlights as of January 2013:
oAs of January 2013, shadow inventory was at 2.2 million units, or nine
months' supply, and represented 85 percent of the 2.6 million properties
currently seriously delinquent, in foreclosure or REO.
oOf the 2.2 million properties currently in the shadow inventory (Figures 1
and 2), 1 million units are seriously delinquent (4.1 months' supply),
798,000 are in some stage of foreclosure (3.2 months' supply) and 342,000
are already in REO (1.4 months' supply).
oThe value of shadow inventory was $350 billion as of January 2013, down
from $402 billion a year ago and down from $381 billion six months ago.
oOver the twelve months ending January 2013, serious delinquencies, which
are the main driver of the shadow inventory, declined the most in Arizona
(40 percent), California(33 percent), Colorado (27 percent), Michigan (25
percent) and Wyoming (23 percent).
oAs of January 2013, Florida, California, New York, Illinois and New Jersey
carried44 percent of all distressed properties in the country. Florida
continues to account for16 percent of the nation's distressed properties.
*Previous data was revised. Revisions with public records data are standard,
and to ensure accuracy, CoreLogic incorporates the newly released public data
to provide updated results.
The full January 2013 Shadow Inventory Report with additional charts and roll
rate information is available here.
Figure 1: Shadow Inventory Detail
Count in Millions, Not Seasonally Adjusted
Figure 2: Months' Supply Shadow Inventory Detail
Number of Months, Not Seasonally Adjusted
Figure 3: Months' Supply
Number of Months, Not Seasonally Adjusted
CoreLogic uses its Loan Performance Servicing and Securities databases to size
the number of 90+ day delinquencies, foreclosures and real estate owned (REO)
properties. Cure rates, which measure the proportion of loans in one stage of
default that cured (versus moving to more severe states of default), are
applied to the number of loans in default at each stage of default. CoreLogic
calculates the share of loans in default that are currently listed on MLS by
matching public record properties in default to MLS active listings. It
applies the percentage of defaulted loans that are currently listed to the
estimate of outstanding loans that will proceed to further stages of default
to calculate the pending supply inventory and adds that to the reported
visible inventory. Visible inventory is compiled from CoreLogic ListingTrends.
To determine months' supply for visible and shadow inventories, CoreLogic uses
the number of non-seasonally adjusted home sales according to CoreLogic data.
The data provided is for use only by the primary recipient or the primary
recipient's publication or broadcast. This data may not be re-sold,
republished or licensed to any other source, including publications and
sources owned by the primary recipient's parent company without prior written
permission from CoreLogic. Any CoreLogic data used for publication or
broadcast, in whole or in part, must be sourced as coming from CoreLogic, a
data and analytics company. For use with broadcast or web content, the
citation must directly accompany first reference of the data. If the data is
illustrated with maps, charts, graphs or other visual elements, the CoreLogic
logo must be included on screen or website. For questions, analysis or
interpretation of the data, contact Lori Guyton at firstname.lastname@example.org or Bill
Campbell at email@example.com. Data provided may not be modified without
the prior written permission of CoreLogic. Do not use the data in any unlawful
manner. This data is compiled from public records, contributory databases and
proprietary analytics, and its accuracy is dependent upon these sources.
CoreLogic (NYSE: CLGX) is a leading property information, analytics and
services provider in the United States and Australia. The Company's combined
data from public, contributory, and proprietary sources includes over 3.3
billion records spanning more than 40 years, providing detailed coverage of
property, mortgages and other encumbrances, consumer credit, tenancy,
location, hazard risk and related performance information. The markets
CoreLogic serves include real estate and mortgage finance, insurance, capital
markets, transportation and government. CoreLogic delivers value to clients
through unique data, analytics, workflow technology, advisory and managed
services. Clients rely on CoreLogic to help identify and manage growth
opportunities, improve performance and mitigate risk. Headquartered in Irvine,
Calif., CoreLogic operates in seven countries. For more information, please
CORELOGIC and the CoreLogic logo are registered trademarks of CoreLogic, Inc.
and/or its subsidiaries.
Contact: For real estate trade media: Bill Campbell, +1-212-995-8057 (office),
firstname.lastname@example.org; or for general news media: Lori Guyton,
+1-901-277-6066, email@example.com; or for government entities: Jordan Hassin,
Press spacebar to pause and continue. Press esc to stop.