The number of active foreclosure properties for sale in Auguts 2016 is down 29.6% from August 2015, according to a new report by CoreLogic®.
Foreclosure inventory in August was at the lowest level since July 2007 with about 351,000, or 0.9 percent, of all homes with a mortgage compared with 499,000 homes, or 1.3 percent, in August 2015.
Foreclosure sales had decreased by 42.4% to 37,000 in August 2016, from 64,000 in August 2015. This is a 69% drop from the peak of 118,221 in September 2010.
There have been approximately 6.4 million completed foreclosures since the financial crisis began in September 2008, and about 8.5 million homes lost to foreclosure from the peak of homeownership in September 2004, according to CoreLogic.
The number of home loans in serious delinquency (defined as 90 days or more past due including loans in foreclosure or REO) a drop of 20.6% from August 2015 to August 2016, with 1.1 million mortgages, or 2.8%, the lowest level since September 2007.
The five states with the most completed foreclosures were Florida (55,000), Texas (27,000), Ohio (23,000), California (22,000) and Georgia (21,000).
Four states and the District of Columbia had the lowest number of completed foreclosures in the 12 months ending in August 2016: the District of Columbia (212), North Dakota (341), West Virginia (469), Alaska (624) and Montana (717).
Four states and the District of Columbia had the highest foreclosure inventory rate in August 2016: New Jersey (3.2%), New York (2.9%), Maine (1.8%), Hawaii (1.8%) and the District of Columbia (1.8%).
The five states with the lowest foreclosure inventory rate in August 2016 were Colorado (0.3%), Minnesota (0.3%), Arizona (0.3%), Utah (0.3%) and Michigan (0.3%).
“Foreclosure inventory fell by 30 percent from the previous year, the largest year-over-year decline since January 2015,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The large decline in the distressed inventory has been one of the drivers of steady home price growth which helps Americans increase their home equity to support increased spending or cushion future economic risk.”
“Foreclosure rates and serious delinquency continued to trend down in August as real estate markets across many parts of the U.S. exhibit strong demand growth and rising prices,” said Anand Nallathambi, president and CEO of CoreLogic. “With the foreclosure inventory now under 1 percent nationally, the need to boost single-family housing stocks through new construction will become more acute in the coming months and years.”