‘Shadow Inventory’ Shrinks in U.S. as More Foreclosed Homes Sell
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About 1.7 million U.S. homes were in the foreclosure process and expected to be put on the market as of April, down 18 percent from the peak, as fewer loans entered delinquency and more distressed homes sold, CoreLogic Inc. said.
The so-called shadow inventory represented a five-month supply at the current sales pace, the Santa Ana, California-based real estate information company, said today. The inventory’s size is a barometer of housing-market health because foreclosed homes sell for lower prices and falling values discourage buying, said Sam Khater, CoreLogic’s chief economist.