Foreclosures Make Less of a Dent in Market

Daily Real Estate News | Thursday, November 01, 2012

Foreclosures continue to fall as the number of short sales inch up, according to CoreLogic’s National Foreclosure Report for September.

“The continuing downward trend in foreclosures along with a gradual clearing of the shadow inventory are signs of stabilization and improvement in the housing market,” says Anand Nallathambi, president and CEO of CoreLogic. “Increasingly improving market conditions and industry and government policy are allowing distressed home owners to pursue refinancing, loan modifications, or short sales rather than foreclosures.”

CoreLogic reports that 57,000 foreclosures were completed in September, down from 83,000 in September 2011. Still, from 2000 and 2006, foreclosures for a more balanced market averaged about 21,000 per month — so today’s numbers still remain elevated.

Homes lost to foreclosure in September are down about 50 percent since peaking September 2010. Foreclosures are also down 22 percent compared to the beginning of the year, says Mark Fleming, CoreLogic’s chief economist.

“While there is significant progress to be made before returning to pre-crisis levels, the trend is in the right direction as short sales, up 27 percent year over year in August, continue to gain popularity,” Fleming notes.

The five states with the highest number of completed foreclosures for the 12 months ending in September (and accounting for nearly 48 percent of all completed foreclosures nationally) were:

  • California (108,000)
  • Florida (92,000)
  • Texas (59,000)
  • Georgia (55,000)
  • Michigan (51,000)

Meanwhile, the states with the lowest number of foreclosures in the past year are South Dakota, District of Columbia, Hawaii, North Dakota, and Maine.

Source: CoreLogic