Completed Foreclosures and Inventory Drops in October
The inventory of foreclosed homes available on the market declined in October as fewer foreclosures were completed, according to CoreLogic.
Nationally, there were 58,000 completed foreclosures during October. This is down from 77,000 the prior month and 70,000 a year ago.
Before the housing market collapse, completed foreclosures averaged 21,000 per month between 2000 and 2006, the Irvine, Calif.-based analytic provider said.
Since the financial crisis began in September 2008, approximately 3.9 million foreclosures have been processed throughout the country.
California finalized the most foreclosures over the last 12 months with 105,000. Behind California, the top five was rounded out by Florida with 95,000 foreclosures during this time period, Michigan had 68,000, Texas completed 59,000 and Georgia had 54,000. These five states accounted for 49% of all completed foreclosures nationwide.
Due to less foreclosures being finalized in October, about 1.3 million homes made up the national foreclosure inventory—or 3.2% of all homes with a mortgage. On an annual basis, CoreLogic said foreclosure inventory has fallen 9%.
The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were Florida (11.1%), New Jersey (7.7%), New York (5.3%), Illinois (5%) and Nevada (4.8%).
“A lower foreclosure inventory is a good indicator of improving housing markets,” said Anand Nallathambi, president and CEO of CoreLogic. “The downward trend in foreclosure inventories over the past year is yet another signal that a recovery in housing is gaining traction.”