Foreclosure rates drop to their lowest levels since 2008.
That’s something to be happy about!
Foreclosures reached their lowest point since 2008 this past November, according to CoreLogic’s November 2014 National Forecast Report.
Foreclosure inventory, which includes homes in any state of foreclosure, fell from 880,000 in November 2013 to 567,000 in November 2014 – a decline of 35.5 percent. November represented the 37th consecutive month in which foreclosure inventory declined year-over-year and the 26th straight month in which the nation’s foreclosure inventory saw a double-digit percentage decline. Month-over-month, foreclosure inventory fell 3.3 percent from October to November.
“The number of completed foreclosures over the past 12 months–just under 575,000 – is at the lowest level in seven years,” said Anand Nallathambi, president and CEO of CoreLogic. “This month’s figure of 41,000 foreclosures is in line levels experienced in the second half of 2007, which was the very beginning of the housing crisis.At current foreclosure rates, we expect to see the foreclosure inventory in the U.S. to drop below 500,000 homes sometime in the first quarter of 2015 which would be another milestone in the healing of the housing market.”
“The foreclosure rate fell in every state, with only the District of Columbia seeing a small increase,” said Molly Boesel, senior economist for CoreLogic. “However, some states still have foreclosure rates of more than twice the national rate. While the national level of foreclosures may normalize in the next two years, there will always be the potential for some pockets of distress in the mortgage market.”
The percentage of mortgages 90 days or more overdue was at 4 percent in November, its lowest level since June, 2008, according to the report.
What does this mean for the housing market?
“Reductions in foreclosures could signal good news for the home mortgage market,” said Walter Bianchi, Founder of Coast2Coast Mortgages.” “With lower foreclosures, lower interest rates and in some cases, lower costs,” home owners and buyers can expect to get more for their housing dollar before prices begin to rise.”