Housing’s ‘shadow inventory’ rose in August

[marmar]

CHICAGO (MarketWatch) — The pending supply or “shadow inventory” of U.S. homes hit 2.1 million units, or eight months of supply, in August, up more than 10% from 1.9 million units, or five months of supply, a year ago, according to a report by CoreLogic on Monday.

Shadow inventory typically isn’t counted in official inventory statistics. CoreLogic estimates the figure by taking the number of properties on which the loan payment is more than 90 days delinquent and adding that to the number of bank-owned properties that aren’t listed on multiple-listing services, according to a CoreLogic news release. CoreLogic is a provider of consumer, financial and property information.

When you add the shadow inventory to the 4.2 million units that made up the visible supply of homes on the market in August, the total inventory of homes was 6.3 million that month, up from 6.1 million in August 2009, according to the report. That’s 23 months of inventory — more than three times the six or seven month’s supply that’s generally considered normal.

“The weak demand for housing is significantly increasing the risk of further price declines in the housing market,” said Mark Fleming, chief economist for CoreLogic, in the news release. .........(more)

The complete piece is at: http://www.marketwatch.com/story/housings-shadow-inventory-rose-in-august-2010-11-22

[abelenkpe]

1. When home prices return to

2.5 or 3x times annual salary and employment is more secure then and only then will the housing market rebound. Shadow inventory increasing reflects the ongoing economic crisis catching up to more people as they are unable to meet their obligations due to wage decreases or job loss. Hope that republicans don't force government cut backs because more people losing work and pay only means more foreclosures, more private businesses going under as fewer people have the means to buy anything. Their deficit reduction plans are a recipe for continuing a downward spiral of economic misery.