According to a recent report from CoreLogic, a leading provider of consumer, financial and property information, Miami currently tops the nation in supply of distressed homes.
The supply of distressed homes is calculated by the amount of ‘shadow inventory’ (homes that are seriously delinquent and not accounted for in MLS), by the amount of sales in the market. The Miami-Miami Beach-Kendall-area tops the list with a 33.5 month-supply, with West Palm Beach-Boca Raton-Boynton Beach, Fort Lauderdale-Pompano Beach-Deerfield Beach, and Orlando-Kissimmee-Sanford also in the top-ten with a 25.8, 23.8 and 26.8 month-supply of distressed homes.
“The weak demand for housing is significantly increasing the risk of further price declines in the housing market,” says Mark Fleming, chief economist for CoreLogic. “This is being exacerbated by a significant and growing shadow inventory that is likely to persist for some time due to the highly extended time-to-liquidation that servicers are currently experiencing.”
CoreLogic says the inventory of unsold homes as of August 2010 was at 4.2 million units, the same number as in August of 2009. Including shadow inventory, there were 6.3 million unsold units in August, up from 6.1 million a year ago.