Shadow inventory nationwide fell to 2.2 million units in January, representing a supply of nine months and a drop of 18 percent from January 2012, according to CoreLogic, a provider of national real estate analytics.
The decline represented 85 percent of the 2.6 million properties currently seriously delinquent, in foreclosure or REO, according to CoreLogic.
"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," Anand Nallathambi, president and CEO of CoreLogic, said in a statement. "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."
Of the 2.2 million properties currently in the shadow inventory, 1 million units are seriously delinquent, 798,000 are in some stage of foreclosure and 342,000 are already in REO.
The 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.
As of January 2013, Florida, California, New York, Illinois and New Jersey carried 44 percent of all distressed properties in the country. Florida continues to account for 16 percent of the nation’s distressed properties.
