A new analysis shows that 47,000 foreclosures were completed in May 2014, a 9.4 percent year-over-year decline from 52,000 in May 2013, according to CoreLogic.
The 9 percent drop is good news, but the number of finalized foreclosures is more than double the average of 21,000 a month recorded between 2000 and 2006, before the housing market collapse.
Another troubling sign is the disproportionately higher inventories in the 23 “judicial states” were a judge has the final say. In the 27 states with a non-judicial and quicker process, inventories are much lower.
“Significant gains have been made in the last year to reduce the foreclosure stock,” said Mark Fleming, chief economist for CoreLogic. “Yet, these improvements are occurring disproportionately in non-judicial states. The foreclosure inventory in judicial states is averaging 2.1 percent, which is more than twice the 0.9 percent average that is occurring in non-judicial states.”
On a month-over-month basis, completed foreclosures were up by 3.8 percent. Completed foreclosures are an indication of the total number of homes actually lost to foreclosure.
About 660,000 homes in the United States were in some stage of foreclosure as of May 2014, compared to nearly 1 million in May 2013, a decrease of 37 percent. This was the 31st consecutive month with a year-over-year decline. As of May 2014, the foreclosure inventory represented 1.7 percent of all homes with a mortgage, compared to 2.6 percent in May 2013.
Highlights as of May 2014:
► Every state posted double-digit year-over-year declines in completed foreclosures.
► Thirty-eight states show declines in year-over-year foreclosure inventory of greater than 30 percent with Arizona, Utah, Nebraska and Minnesota experiencing declines greater than 50 percent.
► The five states with the highest number of completed foreclosures for the 12 months ending in May 2014 were: Florida (122,000), Michigan (44,000), Texas (39,000), California (34,000) and Georgia (32,000).These five states account for almost half of all completed foreclosures nationally.
► The five states (including the District of Columbia) with the lowest number of completed foreclosures for the 12 months ending in May 2014 were: the District of Columbia (71), North Dakota (334), West Virginia (515), Wyoming (710) and Alaska (856).
► The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: New Jersey (5.8 percent), Florida (5.2 percent), New York (4.3 percent), Hawaii (3.1 percent) and Maine (2.8 percent).