Foreclosures Take a Steep Dive in California; Shadow Inventory Is Gone
November 11, 2013A year ago, as the housing recovery started to take hold in California, analysts warned of a “shadow inventory” of homes on the verge of foreclosure that could stop the recovery in its tracks. The prospect of many homes about to land on the market at fire-sale prices threatened to sow uncertainty, hold back price appreciation, and prompt yet another surge of foreclosures.
Well, all that talk was just that: talk.
A pair of housing reports released last week confirmed that foreclosures and distressed-property sales have dropped dramatically to levels not seen since before the recession took hold, with little or no inventory left in the shadows.
The research firm DataQuick said the number of California homeowners entering foreclosure fell last quarter to the second-lowest level in more than seven years — down 58.6 percent in just the past year.
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