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Had Enough? Stage is Set for Foreclosure Declines

Default Notice BHThe national foreclosure inventory dropped 31.5 percent year over year in October 2016–79 percent below the January 2011 peak–according to the latest CoreLogic Foreclosure Report.

“Housing and labor markets improved over the past year, setting the stage for further declines in default rates across much of the nation,” says Anand Nallathambi, President and CEO of CoreLogic. “Home values posted an annual 5.8 percent rise through September in the CoreLogic Home Price Index, and payroll employment rose 2.4 million for the year through October.”

New Jersey and New York topped the list of states with the highest foreclosure inventory as a percentage of mortgaged home with 2.8 percent and 2.7 percent, respectively. Hawaii (1.7 percent), Maine (1.7 percent), and Washington, D.C. (1.6 percent) rounded out the top five states.

In contrast the five states with the lowest foreclosure inventory as a percentage of mortgaged homes all had a percent of 0.3. These states included Colorado, Michigan, and Utah.

Many of these states shared similar trends when it came to their serious delinquency rates. For example, New Jersey and New York also held the highest rates with 5.7 percent and 5.1 percent, respectively. Comparatively, Colorado and Utah also made the list of five states with the lowest serious delinquency rate.

“Loan performance varies by the health of the local economy and housing market. Alaska, North Dakota, and Wyoming, three states with energy-related job loss, experienced a rise in serious delinquency rates while all other states had a decline,” says Frank Nothaft, Chief Economist at CoreLogic. “Although there were large declines in default rates in New York and New Jersey, both states experienced the highest serious delinquency rates in the nation, reflecting lagging home values in most neighborhoods and an unemployment rate above the national average.”

Nationally, CoreLogic reports that the serious delinquency rate declined to 2.5 percent from 3.4 percent in the year prior. This is the lowest level since August 2007, according to the report.

To view the full CoreLogic Foreclosure Report, click HERE.

About Author: Kendall Baer

Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News.

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