Is the Economy Improving? CoreLogic Report Foreclosures down 23% From Year Ago

CoreLogic, Irvine, Calif., reported completed foreclosures fell by nearly 23 percent in 2015 and by nearly 73 percent from its September 2010 peak. As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.
The report also states foreclosure inventory declined by 23.8 percent from a year ago. As of December, the national foreclosure inventory included 433,000, or 1.1 percent, of all homes with a mortgage compared to 568,000 homes, or 1.5 percent, a year ago. The December 2015 foreclosure inventory rate is the lowest for any month since November 2007.
Since the financial crisis began in September 2008, CoreLogic reported 6.1 million completed foreclosures; since homeownership rates peaked in the second quarter 2004, eight million homes have been lost to foreclosure.  “While this is positive for the housing market overall, it also drives a decline in the inventory of affordable for-sale homes,” said Anand Nallathambi, president and CEO of CoreLogic. “The lack of housing stock, particularly affordable inventory, is a growing issue and will limit a full housing recovery in the short to medium term.”

Other statistics from CoreLogic:

  • States with the highest number of completed foreclosures for the 12 months ending in December were Florida (79,000), Michigan (50,000), Texas (30,000), Ohio (24,000) and Georgia (24,000). These five states accounted for almost half of all completed foreclosures nationally.
  • States with the lowest number of completed foreclosures were the District of Columbia (81), North Dakota (220), Wyoming (541), West Virginia (560) and Alaska (700).
  • States with the highest foreclosure inventory rate in December: New Jersey (4.2 percent), New York (3.5 percent), Hawaii (2.4 percent), the District of Columbia (2.3 percent) and Florida (2.3 percent).
  • States with the lowest foreclosure inventory rate in December: Alaska (0.3 percent), Minnesota (0.3 percent), Colorado (0.4 percent), Arizona (0.4 percent) and Utah (0.4 percent).