Foreclosure Inventories Down 40% Year-Over-Year in 7 States

Foreclosure Inventories Down 40% Year-Over-Year in 7 States For the fifth consecutive month, the inventory of foreclosed homes declined about 20 percent year-over-year in May, according to CoreLogic’s monthly update released Tuesday.
About 52,000 foreclosures were completed in May 2013, a 27 percent year-over-year decline from 71,000 in May 2012.
That’s still a far cry from the pre-bubble days. Prior to the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.
Completed foreclosures actually increased 3.5 percent from April to May of this year.
However, the general trend is still moving in the right direction, CoreLogic reports.
Seven states show year-over-year declines in foreclosure inventories of more than 40 percent, with California and Arizona showing year-over-year declines of more than 50 percent.
“The stock of seriously delinquent homes, which is the main driver of shadow inventory, is at the lowest level since December 2008,” Dr. Mark Fleming, chief economist for CoreLogic. “Over the last year, it has decreased in 42 states by double-digit figures, resulting in rapid declines in shadow inventory for the first quarter of 2013.”
Completed foreclosures are an indication of the total number of homes actually lost to foreclosure.
About 1 million homes in the U.S. were in some stage of foreclosure as of May 2013 compared to 1.4 million in May 2012, a decrease of 29 percent.
“We continue to see a sharp drop in foreclosures around the country and with it a decrease in the size of the shadow inventory,” said Anand Nallathambi, president and CEO of CoreLogic. “Affordability, despite the rise in home prices over the past year, and consumer confidence are big contributors to these positive trends.”
May marked the 19th consecutive month with a year-over-year decline in the number of homes in some stage of foreclosure.
As of May 2013, the foreclosure inventory represented 2.6 percent of all homes with a mortgage compared to 3.5 percent in May 2012. The foreclosure inventory declined 3.3 percent from April 2013 to May 2013.
Foreclosure Inventories Down 40% Year-Over-Year in 7 States

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