The U.S. supply of shadow inventory fell to 2.2 million units in January, a 28 percent drop from its peak in January 2010, according to a new report from CoreLogic.
CoreLogic defines shadow inventory as the pending supply of distressed properties that are seriously delinquent, in foreclosure and being held as real estate owned (REO) by mortgage servicers, but have not yet been listed for sale on multiple listing services.
“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 CoreLogic President and CEO Anand Nallathambi in a news release.
He added that more progress needs to be seen in Florida, California, New York, Illinois and New Jersey, which account for 44 percent of all distressed properties in the country.