The number of distressed properties that may soon hit the market declined in January, according to a new report.
The nation’s so-called shadow inventory fell to 2.2 million units in January, an 18% drop from the same month a year earlier, real estate data provider CoreLogic said Tuesday. That represents a supply of nine months.
The Irvine firm calculates pending supply by estimating the number of homes that are in the foreclosure process, are owned by lenders or have seriously delinquent loans.
Shadow inventory has dropped 28% since it peaked at 3 million homes in January 2010.
Tight inventory has played a major role in driving up home prices lately as traditional home buyers and investors seek out few available homes. Shadow inventory provides a look into how many distressed homes could be put up for sale.