As the world of real estate continues to improve, with home values and median sales prices increasing all over the U.S., it’s no surprise that the number of distressed properties has dwindled. According to a report from CoreLogic, a real estate analytics firm, the amount of foreclosures decreased significantly from a year ago in February.
CoreLogic’s National Foreclosure Report, released in late March, revealed that there were 54,000 completed foreclosures that month, down 19 percent from a year ago. On a month-over-month basis, the amount of completed foreclosures fell 7 percent from 58,000 in January. This represents a continuation of steady improvements in the once overpowering “shadow inventory” of distressed properties. As a point of comparison, before the housing crisis in 2007, completed foreclosures averaged 21,000 per month between 2000 and 2006, according to data from CoreLogic.
“February’s 54,000 completed foreclosures is the lowest level nationally since September 2007, with most major metropolitan areas experiencing improvements,” said Dr. Mark Fleming, chief economist for CoreLogic. “Even the major Florida markets are benefiting with the foreclosure inventories falling the fastest in major metropolitan areas, although from a very high level.”
Other industry professionals’ take on the market echo Fleming’s positive outlook. Florida’s statistics, for instance, has analysts anticipating further growth as the state is no longer bogged down with excess foreclosure inventory.
“The first quarter of 2013 continued the trend of strong starts and closings in Orlando,” said Anthony Crocco of Metrostudy, a real estate and housing data reporting agency. “We anticipate starts and closing rates to accelerate in the next two quarters, as most builders have a significant backlog of sales contracts.”
[Source – http://www.metrostudy.com/news.php]
The CoreLogic report also revealed that homes in some stage of the foreclosure process also declined. As of February 2013, there were approximately 1.2 million homes in this pool, known in the industry as the foreclosure inventory. There were 1.5 million in February 2012, or 21 percent more. This represented the 16th consecutive month of declining foreclosure inventory on a year-over-year basis. Month-over-month, the foreclosure inventory fell 1.8 percent from January 2013 to February 2013.
Take a look at a few more highlights from CoreLogic’s National Foreclosure Report:
- The five states with the highest number of completed foreclosures for the 12 months ending in February 2013 were: Florida (95,000), California (90,000), Michigan (73,000), Texas (57,000) and Georgia (49,000). These five states account for almost half of all completed foreclosures nationally.
- The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Wyoming (0.5 percent), Alaska (0.6 percent), North Dakota (0.7 percent), Nebraska (0.8 percent) and Montana (0.9 percent).
- The five non-judicial states with the highest percentage of foreclosure inventory were Nevada, Rhode Island, Oregon, Washington and Arkansas.
For more information or to download a copy of the National Foreclosure Report, click here: http://www.corelogic.com/about-us/news/corelogic-reports-54,000-completed-foreclosures-in-february.aspx