Housing affordability has been a major issue for the RE community lately, but a recent report has brought good news to agents and brokers across the state. According to the report from CoreLogic, an Irvine-based data firm, the number of homeowners behind on their mortgage dropped at the start of this year, offering hope that the economy is finally catching up with the housing market.
According to the report, the share of homeowners experiencing a foreclosure and those who are 90 days or more behind on their mortgage has reduced greatly since the start of the year. In fact, much of Southern California is seeing a 3 year low in foreclosure rates and outstanding mortgages – many of these regions now falling below the national average.
In Los Angeles County, only 0.76% of outstanding mortgages were facing foreclosure in January, down from 1.36% the year before. There was an even larger reduction in those who were 90 days or more behind on their mortgage, dropping from 5.05% to 3.01% year-over-year.
Orange County, Riverside and San Bernardino all saw similar reductions as well. In Riverside and San Bernardino counties, the amount of homes undergoing foreclosure was reduced to 1.03%, a 0.81% reduction from the year before. Similarly, the amount of homeowners 90 days or more behind on their payments has dropped by 2.72%.
Orange County saw some of the biggest reductions, where now only 0.47% of loans are in foreclosure and 1.68% are delinquent – both rates dropping by more than half since the year before.
While the reductions in foreclosure and delinquency rates are an encouraging sign that the market – and economy – are recovering, only time will tell how these rates will play out over the remainder of the year.
Have you noticed fewer foreclosures since the start of the year? Do you think these reductions are a sign that the market is recovering? What are your thoughts?
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