NAR Releases Shadow Inventory Estimates
ByThe state by state shadow inventory report was released last week by the National Association of Realtors® (NAR). Florida has by far the highest number of bank-owned property at an estimated 441,000 units. California comes in second with 228,000 units. Illinois has around 124,000 bank-owned properties and New York is holding about 107,000 REO units according to the NAR report. These are the only states holding shadow inventory in six figures.
When NAR divided the inventory in each state by the monthly number of distressed sales they discovered a wide discrepancy in the length of time it would take to clear the inventory. At the high end was New Jersey with an estimated 51 months of REO inventory. Most of the shadow inventory is expected to clear in 24 months or less at the current rate of absorption. California’s months in REO status averages 11, while Nevada’s shadow inventory averages 7 months, Arizona’s REO status averages 9 months and Georgia’s REOs are in that status for an average of 12 months. The range was from 51 to 7 months…
NAR Releases Shadow Inventory Estimates
