Total Unsold Inventory Estimated at 23 Months

The figures are staggering. Mind-boggling in fact. In a healthy real estate market, 6 months of inventory is considered "normal." But as the housing crisis drags on, the total number of unsold residential housing units has crested past the 23-month mark.

In a report just published by CoreLogic, there are 2.1 million residential properties either in the foreclosure process or headed for foreclosure.

As of August 2010, the visible supply of unsold inventory was 4.2 million (visible inventory is the unsold inventory of new and existing homes on the market. The visible months’ supply increased to 15 months in August, up from 11 months a year earlier due to the decline in sales during the last few months).

The total visible and shadow inventory was 6.3 million units in August, up from 6.1 million a year ago. The total months’ supply of unsold homes was 23 months in August, up from 17 months a year ago.

"The weak demand for housing is significantly increasing the risk of further price declines in the housing market," notes Mark Fleming, chief economist at CoreLogic.

To which we say, duh.

We spoke with a colleague a couple of days ago about his view on where the property values of Portland waterfront condos are heading. Down, significantly -- was the nut of his analysis. But more interesting, he went on to tell me about an appraisals that came in below value. 

Now if you're a seasoned agent reading this, you might say 'so what, we're seeing that more and more.' Right.

But here's the punchline: they appealed the appraisal only to have the revised version come back significantly lower than the first.  I must admit, that was a first for me.