Shadow Inventory. By Bill McBride on 11/21/2010 10:10:00 PM Tomorrow morning CoreLogic will release their Shadow Inventory report as of August 2010. For this report, CoreLogic estimates the number of 90+ day delinquencies, foreclosures and REOs not currently listed for sale. Obviously if a house is listed for sale, it is already included in the "visible supply" and cannot be counted as shadow inventory. CoreLogic then adds this shadow or "pending inventory" to the "visible supply" for August as reported by the NAR: 4.1 million units and 12.0 months-of-supply. The term "shadow inventory" is used in many different ways. My definition is: housing units that are not currently listed on the market, but will probably be listed soon.
REOs, foreclosures in process and some percentage of seriously delinquent loans. Those Who Blindly Follow Housing Prices Without Taking Other Metrics Into Consideration Are Missing the Housing Depression of the New Millennium. | zero hedge. Note: See me discuss this topic live on Bloomberg TV, Monday October 4th, 2010 at 4:30 pm! As illustrated in the post “Why the Case Shiller Index, Although Showing Another Downturn Coming, is Overly Optimistic and Quite Misleading! “, many mainstream media outlets and investors (retail, institutional and professional included) have become to reliant on the easy to quote, easy to publish and convenient to manipulate Case Shiller home price index.
While an econometric marvel, it is not perfect. As a matter of fact, the imperfections that it does have happen to materially and significantly minimize the influence of the factors which actually contribute greatly to the current housing malaise. This, in and of itself, is significant enough of a reason for interested parties to look past the Case Shiller index in to other metrics that can help give a more accurate picture of what is actually happening on the ground. You should be saying to yourself, “Damn, that’s a big difference!!! Next up… Find New York City Apartments For Sale & Manhattan Real Estate T.
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