How To Understand The Low Foreclosure Rate

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June 20, 2016 by Jeff Lowen

Current Foreclosure Highlights :

  • According to CoreLogic, the national foreclosure rate dropped to 1.1% of all homes with a mortgage. This is the lowest percentage experienced since October 2007.
  • April marked the 54th consecutive month of year-over-year declines in foreclosure inventory.
  • Only 3% of homes in the United States are in serious delinquency. More and more homeowners are escaping negative equity as prices rise.

With the current foreclosure rate dropping to a new low, a ‘post-real estate crisis’ new low, only three out of every hundred homes are in serious delinquency. From just a year ago, foreclosures are down nearly 25%. Now that’s a great national metric to prove we’re definitely on the confidence rise.

Still, with this good news, there are states like Florida (2%), New York 3.2%), Maine (2%), New Jersey (3.7%) and Hawaii (2.2%) that are at or above the 2% foreclosure inventory as depicted in the infographic.

These offer some interesting markets for investors, and some equally interesting challenges for traditional buyers. For example, in the Tampa Bay area, over 50% of the homes that are sold are being purchased with cash. As a typical home buyer with FHA financing who may need seller help with closing costs, it’s hard to compete with a cash buyer. An agent skilled in negotiation and creative offer strategies is paramount.

Corelogic-Foreclosure-STM-1046x2095

 

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