U.S. fore­clo­sures high­est in NYC, Chicago, Wash­ing­ton DC

Financial Mirror (Cyprus) - - FRONT PAGE -

In the month of Oc­to­ber, some 37,000 U.S. home fore­clo­sures were com­pleted, down 12.3% month over month and down 27.1% from a to­tal of 51,000 in Oc­to­ber 2014, ac­cord­ing to CoreLogic. The re­search firm notes that the cur­rent fore­clo­sure in­ven­tory to­tals 1.2% of all homes with a mort­gage in the United States, down from 1.6% in Au­gust of 2014.

The num­ber of U.S. homes cur­rently in some stage of fore­clo­sure to­tals 463,000, com­pared with 589,000 in Oc­to­ber 2014. That rep­re­sents a de­cline in the na­tional fore­clo­sure in­ven­tory of 21.5% com­pared with Oc­to­ber a year ago.

The four states and the Dis­trict of Columbia with the largest fore­closed in­ven­tory as a per­cent­age of mort­gaged prop­er­ties are New Jer­sey (4.5%), New York (3.6%), Hawaii (2.5%), Florida (2.5%) and D.C. (2.3%). The five states with the low­est in­ven­to­ries of fore­closed prop­er­ties are (0.4%), Ari­zona (0.4%), Min­nesota (0.4%), Ne­braska and Colorado (0.4%).

The five states with the high­est num­ber of com­pleted fore­clo­sures in the past 12 months were Florida (86,000), Michi­gan (59,000), Texas (30,000), Ge­or­gia (25,000) and Cal­i­for­nia (24,000).

The five states with the fewest fore­clo­sures in the prior 12 months through Oc­to­ber were Dis­trict of Columbia (76), North Dakota (239), Wy­oming (515), West Vir­ginia (544) and Hawaii (700).

CoreLogic’s chief econ­o­mist said that “im­proved eco­nomic con­di­tions and more fore­clo­sure com­ple­tions have pushed the fore­clo­sure rate lower. The na­tional un­em­ploy­ment rate de­clined to 5.0% in Oc­to­ber, the low­est since De­cem­ber 2007, and the CoreLogic na­tional Home Price In­dex has risen 37% from its trough.”

The com­pany’s CEO added, “we are head­ing into 2016 with the low­est fore­clo­sure in­ven­tory in eight years thanks to ex­ca­lat­ing [sic] home val­ues and pro­gres­sive im­prove­ment in Alaska (0.4%) the U.S. econ­omy. A large pro­por­tion of the re­main­ing fore­clo­sure in­ven­tory is clus­tered in New York, New Jer­sey, and Florida. Equally en­cour­ag­ing is the drop in mort­gage delin­quency rates re­flect­ing the stronger labour mar­ket and tighter un­der­writ­ing since 2009.”

Of the ten largest U.S. metro ar­eas, the fore­clo­sure in­ven­tory was high­est in the New York area, at 3.6%. Chicago’s fore­clo­sure in­ven­tory to­talled 1.7%, and Wash­ing­ton, D.C., posted a to­tal of 1.1%.

The New York met­ro­pol­i­tan area, in­clud­ing White Plains and Jer­sey City, also posted the high­est se­ri­ous delin­quency rate of 6.3%, fol­lowed by the Chicago metro area’s se­ri­ous delin­quency rate of 4.6% and a rate of 3.3% in the At­lanta metro area.

Ac­cord­ing to CoreLogic, the cur­rent fore­clo­sure rate of 1.2% is the same as the Novem­ber 2007 rate, and the fore­clo­sure in­ven­tory has de­clined ev­ery month for the past 48 months. Be­fore the col­lapse in the hous­ing mar­ket in 2007, the av­er­age num­ber of fore­clo­sures com­pleted in a month was 21,000.

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