The number of homes that were expected to come onto the housing market fell to its lowest, than it has been in more than three years, as the housing market begins to show improvement, Tuesday.
According to Reuters, a CoreLogic report revealed that the pending supply of homes, also known as shadow inventory, decreased to 2.3 million units as of the end of July.
It also went down to 10.2 percent from 2.6 million units a year ago, the report indicated.
"Shadow inventory includes the number of properties that are seriously delinquent or behind with loan payments, in foreclosure or held by lenders and servicers but not currently listed on the market," according to Reuters.
"At the end of July it was equal to about six months' supply."
Anand Nallathambi, chief executive of CoreLogic said in a statement, "Broadly speaking, the shadow inventory continued to shrink in July."
"This is yet another hopeful sign that the housing market is slowly healing."
Even though economists believe the housing market has finally made a comeback, the market still faces challenges including the large numbers of foreclosures that needs to be saved by the market.
According to the report, one million homes in shadow inventory were 90 days or more behind in their home payments. Also, 900,000 homes were in some form of foreclosure and 345,000 had been seized by banks.
The report also showed that, a decline in shadow inventory will benefit the slow housing market recovery, as fewer properties come to the market, meaning less pressure on the markets prices.
