Monday, June 27, 2011

HOUSING "SHADOW MARKET" SHRINKING

The housing market’s shadow got a bit shorter in April, but still represents a huge overhang for industry.

The “shadow inventory” — homes ready for sale but being held off the market — dropped to 1.7 million in April, down from 1.9 million a year ago, says mortgage tracker CoreLogic.

The report says the decline reflects fewer newly delinquent loans in recent months. CoreLogic estimates the shadow inventory represents 5 months’ supply at current sales rate.

The visible inventory — homes actually on the market — is about 9 months supply. That’s closer to 6 in a healthy market.

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