Shadow inventory for residential properties has declined to 1.7 million units in April, according to the analytic provider CoreLogic.

This five months’ worth of supply is down from 1.9 million units compared to April 2010.

The Santa Ana, Calif.-based firm said the inventory has gone down because there are fewer delinquencies and more distressed sales.

Out of the shadow inventory supply, 790,000 units are seriously delinquent, 440,000 are in some stage of foreclosure and 440,000 are REO properties.

Shadow inventory, also known as pending supply, is calculated by determining the number of distressed properties not listed on multiple listing services where the mortgage is 90 days or more late, in foreclosure already, or REO on the books of a financial institution.

“The shadow inventory has declined in large part due to a reduced flow of newly delinquent loans in recent months,” said Mark Fleming, chief economist for CoreLogic. “However, it will probably take several years for the shadow inventory to be absorbed given the long timelines in processing and completing foreclosures.”

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