Shadow inventory is a topic often discussed on this blog. How much exists? Is it increasing or decreasing? How many months supply does it equate to?
Well, CoreLogic®, a leading provider of analytics, just released a report showing that nationwide shadow inventory dropped to 1.5 million units in April 2012 – representing a four-months supply of inventory. This drop was a 14.8 percent decrease from April 2011′s 1.8 million units of shadow inventory, which at the time represented a six-months supply of inventory.
Furthermore, in Nevada, serious delinquencies, which are the main driver of the shadow inventory declined 27.4 percent. This number was the 3rd-largest decline for any state [behind Arizona (-37.0 percent) and California (-28.0 percent)].
See the entire report here: CoreLogic Reports Shadow Inventory Fell in April 2012 to October 2008 Levels