Foreclosure Inventory Continues to Rapidly Decline

The national inventory of foreclosures could drop to 500,000 properties by the end of the year, CoreLogic reports.

That’s based on recently released numbers from July, when the inventory stood at 640,000 homes. A year earlier, that number was 976,000. Foreclosed homes account for 1.6 percent of all homes with a mortgage. In July 2013, foreclosed homes were 2.4 percent of all mortgaged homes.

“The stock of distressed debt continues to rapidly decline, especially in western states,” said Sam Khater, deputy chief economist at CoreLogic. “The number of seriously delinquent loans fell by more than 25 percent from the prior year in 10 states, and seven of those states were in the West.”

The number of completed foreclosures (45,000) was also down in July. That’s a 21.2 percent decline from July 2013.

Other findings from CoreLogic’s report:

  • New Jersey (5.7 percent), Florida (4.8 percent), New York (4.3 percent), Hawaii (3 percent) and Maine (2.7 percent) were the five states with the highest percentages of foreclosed homes.
  • At the other end of the spectrum, the five states with the lowest percentages were Nebraska (0.4 percent), Alaska (0.4 percent), Arizona (0.5 percent), Minnesota (0.5 percent) and North Dakota (0.5 percent).
  • July was the 33rd month in a row where the foreclosure inventory declined.

Article compliments of Community Investor magazine.