Dive Brief:
-
The inventory of foreclosed properties is down 27.3% since February 2014, according to CoreLogic’s February National Foreclosure Report. And the number of “seriously” delinquent mortgages is down by 19.3%.
-
From the 2010 peak, the number of completed foreclosures in February was down 67%, the report said. Since the beginning of the financial crisis in 2008, 5.6 million homeowners have lost their property to foreclosure.
-
Foreclosure activity is waning the most in the Dakotas, West Virginia, Wyoming, and the District of Columbia, the report found. The states with the greatest number of completed foreclosures in February are Florida, Michigan, Texas, California and Georgia—five states that accounted for almost half of all completed foreclosures nationwide.
Dive Insight:
Fewer foreclosures are a sign that the housing market is continuing to recover. And as fewer homeowners default on their mortgages, it’s likely that fewer of their homes will wind up in foreclosure in the future.
Lower foreclosure rates in local markets can also alert homebuilders that home prices may be on their way up. Typically, banks underprice foreclosed properties for quicker sale, which can depress the ability of other sellers to list their homes for what they are worth.
