Foreclosure Inventory Falls 35%, Celebration Muted
Many markets across the country are seeing fewer foreclosures. That’s because foreclosure inventory has plunged 35 percent nationally from a year ago, but housing experts aren’t ready to say the foreclosure crisis is completely behind the nation quite yet.
The Current State of Foreclosures:
Completed foreclosures fell 9.9 percent year-over-year, but on a month-to-month basis completed foreclosures ticked up 2.7 percent in June compared to May, according to CoreLogic’s June National Foreclosure Report, which provides a snapshot of completed foreclosures and the foreclosure inventory. There were 54,000 completed foreclosures in June – still elevated compared to historical averages of about 21,000 per month between 2000 and 2006.
In June, about 648,000 homes were in some stage of foreclosure, known as foreclosure inventory, compared to 1 million last year at this time, CoreLogic reports. Foreclosure inventory has fallen 35 percent year-over-year and the foreclosure inventory now makes up 1.7 percent of all homes with a mortgage. It represents the 32nd consecutive month for year-over-year declines.
“While 32 straight months of year-over-year decline in the foreclosure rate is cause for celebration, the total number of homes still in the foreclosure process remains almost four times as high as the average in the early 2000s,” says Mark Fleming, chief economist for CoreLogic. “Additionally, there is concern over whether or not we can maintain this pace of improvement as the foreclosure inventory becomes more concentrated in judicial states with lengthier, more complex processes and timelines.”
The five states with the highest foreclosure inventory (as percentage of all homes with a mortgage) in June were:
- New Jersey: 5.7%
- Florida: 5%
- New York: 4.3%
- Hawaii: 3.1%
- Maine: 2.7%
Meanwhile, the following five states have the lowest foreclosure inventory (as percentage of homes with a mortgage):
- Alaska: 0.4%
- Nebraska: 0.4%
- North Dakota: 0.5%
- Minnesota: 0.5%
- Wyoming: 0.5%