Foreclosures Declined Greatly Year-Over-Year

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Peoples Home Equity comments on a recent Corelogic.com article regarding the national number of foreclosures in December 2014 vs. December 2013.

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The inevitable surge in home buyer activity in the spring and summer will again lead to a dramatic fall in national foreclosure levels.

Peoples Home Equity is pleased to inform first-time home buyers and existing home owners alike that national foreclosure activity fell 34% from December 2013 to December 2014.

Accordingly to a February 10th Corelogic article, national foreclosure inventories fell to “approximately 552,000 homes, or 1.4 percent of all homes with a mortgage, down from 840,000, or 2.1 percent, in December 2013.” In addition, “this marks 38 consecutive months of continuous year-over-year declines in the inventory of foreclosed homes, including 23 straight months of declines greater than 20 percent.”

Peoples Home Equity views this information as win-win-win for buyers, homeowners, and sellers. At first glance, buyers may be disappointed by this information since it implies there are less bargain price properties available. However, buyers should remember that this means the housing market is improving. The market will probably continue to improve, thanks to the abundance of jobs available and the number of Americans employed. Homeowners are happy because less foreclosure inventory means rising equity values, or at the very least, less market weakness to hold back property prices from rising higher. Sellers enjoy this news because with less foreclosure properties listed, buyers will begin to look at purchasing higher priced properties.

Looking at a state by state comparison, “the five states with the largest year-over-year drop in the foreclosure inventory were: Utah (-48.8 percent), Florida (-48.6 percent), Maine (-45.9 percent), Idaho (-45.1 percent), and Iowa (-43.4 percent).”

In terms of the judicial system clearing out the number of foreclosures on the market, “judicial foreclosure states, on average continue to have higher foreclosure rates than non-judicial states, averaging 2.4 percent and 0.7 percent, respectively, in December 2014.”

With first-time home buyers very much eager to stop paying rent, Peoples Home Equity expects the number of foreclosure listed properties to drop in number again significantly over the next 12 months. Americans are just now catching up to being able to afford a home since the recession. Jobs have enabled individuals to build, or in many cases rebuild, their credit scores and save for a down payment. The inevitable surge in home buyer activity in the spring and summer will again lead to a dramatic fall in national foreclosure levels, possibly taking away more housing inventory available to buyers and pushing home prices even higher! To get a head start on purchasing a property because home prices or mortgage rates rise into the summer, Peoples Home Equity strongly encourages prospective mortgage applicants to get pre-approved for a home loan today.

If you are in need of a mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026.

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Giorgio Urbano Ferrero
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