Bloomberg reports that First American CoreLogic (whatever that is) is stoking worries about the “shadow inventory” of foreclosures:
The number of homes that may be in the pipeline for a sale because of foreclosure and delinquency climbed about 55 percent to 1.7 million at the end of September, according to estimates by First American CoreLogic.’
But lookie here:
Total inventory — including the shadow supply — was 5.5 million in September, down from 5.7 million a year earlier.
So even assuming for the sake of argument that every house in the foreclosure pipeline ends up in foreclosure, the supply of homes for sale was lower this fall than it was a year earlier.
Yes, the supply of home for sales is getting smaller, not larger.
Don’t take my word for it. Go ask someone who is trying to buy a home in Las Vegas, Bakersfield, Calif, San Diego, Sacramento, Santa Clarita, Calif., the Inland Empire, or Orange County, Calif.
Dr. Duru