Is The Foreclosure Dip Temporary?

In May, there were 47,000 completed foreclosures nationwide, down 9.4 percent year-over-year, according to CoreLogic’s May National Foreclosure Report. Every state posted double-digit year-over-year declines in completed foreclosures, but some housing analysts say the foreclosure drop could be temporary.

“There is still much more hard work to do to clear the backlog of foreclosed properties,” says Anand Nallathambi, president and CEO of CoreLogic. “Although difficult, we need to continue to aggressively clear distressed homes to ensure the return of a healthy housing market.”                           foreclosure

About 660,000 homes were in some stage of foreclosure in May, marking a 37 percent year-over-year decrease. That represents 1.7 percent of all homes with a mortgage, down from 2.6 percent in May 2013.

“Significant gains have been made in the last year to reduce the foreclosure stock,” says Mark Fleming, chief economist for CoreLogic. “Yet, these improvements are occurring disproportionately in non-judicial states. The foreclosure inventory in judicial states is averaging 2.1 percent, which is more than twice the 0.9 percent average that is occurring in non-judicial states.”

States With Biggest Declines in Foreclosure Inventory

Thirty-eight states posted year-over-year declines in its foreclosure inventory of greater than 30 percent. But the following states had the largest year-over-year declines, at more than 50 percent:

  • Arizona
  • Utah
  • Nebraska
  • Minnesota

States With Highest Number of Completed Foreclosures

The following states had the highest number of completed foreclosures (for the 12 months ending in May) and accounted for nearly half of all completed foreclosures nationally, according to CoreLogic’s report:

  • Florida: 122,000
  • Michigan: 44,000
  • Texas: 39,000
  • California: 34,000
  • Georgia: 32,000

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Source: Corelogic

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