Shadow inventory drops slightly

Many foreclosed homes haven't even been listed for sale yet.The national backlog of distressed properties that have not yet reached the market – dubbed the shadow inventory – dropped slightly in January, as the pace of foreclosure sales has continued to be strong.According to CoreLogic, the number of shadow properties dropped from 2 million in December to 1.8 million in January – equaling about nine months of supply at the current pace.”While the trend of the shadow inventory is improving somewhat, the current level and distressed months’ supply remain very high,” said Mark Fleming, chief economist for CoreLogic. He added that those properties would have to enter the market at some point, which will put more downward pressure on prices.However, Texas has remained somewhat isolated from the issue. It was one of a few states highlighted in the report as regions with relatively low levels of pending foreclosures, because the effect of the housing bust was not as severe.A significant portion of Houston homes sold last month were foreclosures. According to the Houston Association of Realtors, they made up more than 21 percent of local home sales in February.Courtesy of 2M Realty News

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