sellers marketThe REO market is like any other in real-estate: Super-competitive, and loaded with contradictions. Even if we accept that numbers don’t lie, everyone draws different conclusions. For instance, yesterday’s well-researched story about the growth of “shadow inventory” among banks and other lenders leaves a much different impression than the figures released today by CoreLogic.

The company’s latest dispatch is available at SacBee.com, but here’s where they say things stand nationally:

As of April 2013, shadow inventory was under 2 million properties, or 5.3 months’ supply, and represented 85 percent of the 2.3 million properties currently seriously delinquent, in foreclosure or REO.

Of the less than 2 million properties currently in the shadow inventory, 890,000 properties are seriously delinquent (2.4 months’ supply), 761,000 are in some stage of foreclosure (2 months’ supply) and 336,000 are already in REO (0.9 months’ supply).

The value of shadow inventory was $314 billion as of April 2013, down from $386 billion in April 2012 and down from $320 billion six months prior, in October 2012.

CoreLogic also reports that foreclosures are up 5.2% nationally. Combined with that sizable 85% figure cited above and more anecdotal examples like the one we discussed Monday, we still face essentially the same long-term scenario: As values increase, new construction lags, and more sellers complete the foreclosure process on more distressed properties, it’s fair to conclude that REOs will go a long way toward relieving inventory shortages.

For the record, CoreLogic ranks California’s total foreclosures for the year ending May 2013 at 76,000 — second in the U.S. behind Florida. Much of that inventory has yet to come to the market, and I’ll be working to bring Sacramento-area properties to eager buyers around the region.

Contact me today about maximizing your REO assets, and see my listings for REOs available now.

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