While the year may have got off to a rocky start, there have been several recent signs of improvement throughout the market as we continue through the spring. Recently, a new development indicates the market, and the economy, have been making further improvements – foreclosure rates have dropped nearly 26% year-over-year. Now, many brokers and agents are wondering if the end of the foreclosure crisis is in sight.
CoreLogic, a global property information, analytics and data-enabled services provider, recently released its March 2015 National Foreclosure Report, which shows that the foreclosure inventory declined by 25.7 percent and completed foreclosures declined by 15.5 percent from March 2014. There were 41,000 completed foreclosures nationwide in March 2015, down from 48,000 in March 2014, representing a decrease of 65.2 percent from the peak of completed foreclosures in September 2010, according to CoreLogic data.
Completed foreclosures are an indication of the total number of homes actually lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 5.6 million completed foreclosures across the country, and since homeownership rates peaked in the second quarter of 2004, there have been approximately 7.7 million homes lost to foreclosure.
CoreLogic also reports that the number of mortgages in serious delinquency declined by 19.1 percent from March 2014 to March 2015, with 1.5 million mortgages, or 3.9 percent, in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO). This is the lowest delinquency rate since May 2008. On a month-over-month basis, the number of seriously delinquent mortgages declined by 1.9 percent.
As of March 2015, the national foreclosure inventory included approximately 542,000 homes, or 1.4 percent, of all homes with a mortgage compared with 729,000 homes, or 1.9 percent, in March 2014, representing a year-over-year decline of 25.7 percent.
“We are seeing additional improvement in housing market conditions due to a decline in the serious delinquency rate to 3.9 percent, far below the peak of 8.6 percent in early 2010,” CoreLogic Chief Economist Frank Nothaft said. “Despite the decline in the number of loans that are 90 days or more delinquent or in foreclosure, the percent of homeowners struggling to keep up is still well above the pre-recession average of 1.5 percent.”
“Foreclosures and serious delinquency rates continue to drop as the home purchase market begins to emerge from its eight-year slump,” CoreLogic President and CEO Anand Nallathambi said. “Based on the current trends in completed foreclosure rates, we expect the foreclosure inventory to drop below 1.3 percent by mid-year, a level not seen since the end of 2007.”
Have you noticed this recent drop in foreclosure activity? Do think this is a positive indicator of things to come throughout 2015? We’d love to hear your thoughts!
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