The housing market may be getting back on track if the latest RealtyTrac survey is any indication.
According to the report, foreclosure activity hit a five-year low in September with a total of 180,427 default notices, scheduled foreclosure auctions and bank repossessions. This is a seven percent drop from August and a 16 percent drop from last year.
Experts attribute these steep decreases to declines in key nonjudicial foreclosure states such as California, Georgia, Texas, Arizona and Michigan. On the other hand, states including Florida, Illinois, Ohio, New Jersey and New York continue to experience high foreclosure numbers.
In California specifically, foreclosure starts have fallen 45 percent from last year. However, analysts believe the state may become a quasi-judicial foreclosure state now because of wariness over the Homeowner Bill of Rights.
Regardless of the analysis, it is evident that the drop may indicate that housing relief is on its way.