CoreLogic reports that U.S. foreclosure inventory is shrinking rapidly as the real estate market continues to improve. The number of homes foreclosed upon fell more than 30% for the year ending in October and more than 25% from the previous month. CoreLogic analysts believe it is a sign of continued improvement that will likely lead to additional price growth in the coming year. Every state reported declines in the number o foreclosures for the year and serious loan delinquencies are also down across the board. For more on this continue reading the following article from TheStreet.
The foreclosure inventory rate continued to drop sharply, though the current levels still remain well above normal.
The number of completed foreclosures in October dropped to 48,000, down 25.6% from the previous month and more thanr 30% from a year earlier, according to the latest report from CoreLogic.
The current pace is still more than double the foreclosure rate of 21,000 a month that prevailed prior to the bubble.
As of October 2013, 879,000 homes were in some stage of foreclosure, down 31% from 1.3 million homes a year earlier. That represents 2.2% of all homes with a mortgage and is down from 3.1% a year earlier. Still, in normal times, the foreclosure inventory rate was just about 0.6%.
But the improvement in the level of distressed loans is nevertheless a sign that the housing market is healing and it bodes well for home prices.
"The scourge of an elevated foreclosure inventory is easing. In October, every state posted a year-over-year decline in completed foreclosures, which is positive news," said Anand Nallathambi, president and CEO of CoreLogic in a statement. "Additionally, the rate of serious delinquencies, which fell more than 25% year over year, is at the lowest level in nearly five years, which is great news as we head into a new year."
This article was republished with permission from TheStreet.