Housing Markets Becoming Less Saturated with REOs
The nation’s REO stock fell 0.6 percent in May to 524,000 properties, according to analysis released by Barclays Capital.
In addition, the research firm estimates that housing’s shadow inventory – which Barclays defines as the supply of homes that are 90 or more days delinquent or in the process of foreclosure, meaning they are nearing REO status – declined by 2.3 percent to 4.02 million properties.
A separate study released by Clear Capital supports the assumption that indeed, there are fewer REOs influencing the market. The real estate valuation firm reports that REO saturation – the percentage of bank-owned homes sold as compared to all properties sold – is steadily declining.
Data from Clear Capital shows that REO saturation dropped 22.7 percent nationally during…