Whoo Hoo! Phoenix only has 16 months of housing “shadow” inventory. Er… 16 months? That’s the lowest shadow inventory of any of the cities Standard and Poors studied? Yikes!
S&P found the largest shadow inventory in New York City. There, it would take 103 months to clear the distressed properties, or more than 8 years. The national average is at 34 months. Phoenix had the smallest shadow inventory. That market would take 16 months to clear the amount distressed properties yet to hit the market.
But that does fit the history of Phoenix being one of the first markets to bounce back after a recession.
Definition – S&P defines “shadow inventory” as the amount of outstanding properties 90 days or more delinquent, in foreclosure, or in REO status but not yet on the market.