Foreclosures Sink 21% Year-Over-Year as Inventory Falls Below National Average in 36 States

Over the past year, the U.S. foreclosure rate dropped 21.2 percent, down to 45,000 in July.  That’s the 18th straight month of at least a 20 percent year-over-year decline, according to CoreLogic’s latest update on foreclosures released Wednesday.

The continuing slide in foreclosures is a positive sign for the overall housing market, although the monthly rate is still more than double compared with the years before the financial crisis.
A CoreLogic analysis shows 45,000 foreclosures were completed in July 2014, a 21.2 percent year-over-year decline from 57,000 in July 2013.
Prior to the housing collapse in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006. On a month-over-month basis, completed foreclosures were down by 8.5 percent in July.
Completed foreclosures represent the total number of homes actually lost to foreclosure.
“Based on current trends, the overall foreclosure inventory could trend down to as low as 500,000 homes by year end which is very positive news for the housing market,” said Anand Nallathambi, president and CEO of CoreLogic.
The foreclosure picture is brighter in the “non-judicial states” where the process is faster and where foreclosure stocks are consistently low — and lower levels of serious delinquency.
In total, there are now 36 states with an inventory of foreclosed homes lower than the national rate of 1.7 percent.
As of July, approximately 640,000 homes in the United States were in some stage of foreclosure, compared with 976,000 in July 2013, a year-over-year decrease of 34.4 percent.
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