The so-called shadow inventory fell to 1.7 million units in April, according to a report released today by CoreLogic.
It’s down from 1.9 million units a year ago, thanks to increased distressed sales and fewer new mortgage delinquencies.
Unfortunately, the supply hasn’t changed because of a slower sales rate – it stands at five months, the same level seen a year earlier.
But it has dropped roughly 20 percent from the two-million unit peak seen in January 2010, when the supply was on pace to take a staggering 8.5 months to clear.
Shadow Inventory Represents Nearly a Third of Market
It now accounts for 29 percent of the combined shadow and visible housing inventories.
The total shadow and visible inventory stood at 5.7 million units as of April, down from 6.2 million units a year ago.
In other words, home prices are going to remain under some serious pressure, even if these homeowners ride it out.