April fore­clo­sures re­main high in New Jer­sey, New York, Hawaii

Financial Mirror (Cyprus) - - FRONT PAGE - By Paul Au­sick

In the month of April, 37,000 U.S. home fore­clo­sures were com­pleted, down 0.3% month over month and down 15.8% from a to­tal of 43,000 in April 2015, ac­cord­ing to CoreLogic. The re­search firm notes that the cur­rent fore­clo­sure in­ven­tory totals 1.1% of all homes with a mort­gage in the United States, down from 1.4% in April of last year.

The num­ber of U.S. homes cur­rently in some stage of fore­clo­sure totals ap­prox­i­mately 406,000, com­pared with 530,000 in April 2015. That rep­re­sents a de­cline in the na­tional fore­clo­sure in­ven­tory of 23.4% com­pared with April 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 (3.7%), New York (3.2%), Hawaii (2.2%), D.C. (2.1%) and Florida (2%). The five states with the low­est in­ven­to­ries of fore­closed prop­er­ties are Alaska (0.3%), Min­nesota (0.3%), Utah (0.4%), Ari­zona (0.4%) and Colorado (0.4%).

The five states with the high­est num­ber of com­pleted fore­clo­sures in the past 12 months were Florida (66,000), Michi­gan (47,000), Texas (27,000), Ohio (23,000) and Cal­i­for­nia (23,000). The five with the fewest fore­clo­sures in the prior 12 months through April were District of Columbia (128), North Dakota (317), West Vir­ginia (482), Alaska (653) and Mon­tana (695).

“The re­cov­ery in home prices and im­proved labour mar­ket have con­trib­uted to the drop in se­ri­ously delin­quent rates. Over the 12 months through April, the CoreLogic Home Price In­dex for the U.S. rose 6.2 per­cent and the labour mar­ket gained 2.6 mil­lion jobs. We also found that the se­ri­ously delin­quent rate fell by about three-quar­ters of a per­cent­age point,” said CoreLogic’s chief econ­o­mist.

The com­pany’s CEO added: “The num­ber of home­own­ers who have neg­a­tive eq­uity has fallen by two-thirds since its 2010 peak, and the num­ber of bor­row­ers in fore­clo­sure pro­ceed­ings has also con­tin­ued to drop. De­spite this progress, about four mil­lion home­own­ers re­mained un­der­wa­ter at the end of the first quar­ter, and th­ese bor­row­ers are more vul­ner­a­ble to fore­clo­sure pro­ceed­ings if they should fall delin­quent.”

Of the 10 largest U.S. metro ar­eas, the fore­clo­sure in­ven­tory was high­est in the New York area, at 3.1%. The Mi­ami metro area’s fore­clo­sure in­ven­tory to­taled 2.7%, and the Las Ve­gas area had the third-high­est to­tal at 1.6%. The low­est totals were posted in the San Fran­cisco (0.1%) area and in Den­ver (0.3%).

Florida, Ten­nessee, Ne­vada, Michi­gan and Min­nesota all posted year-over-year de­clines of more than 30% in fore­clo­sure in­ven­tory. Florida’s fore­clo­sure in­ven­tory has fallen 37% in the past 12 months and Ten­nessee’s has dropped by nearly 36%. Ne­vada’s fore­clo­sure in­ven­tory fell by 32.7%, just ahead of Michi­gan’s drop of 32.6%. The fore­clo­sure in­ven­tory fell by 30.2% in Min­nesota.

Ac­cord­ing to CoreLogic, the cur­rent fore­clo­sure rate of 1.1% is the same as the Oc­to­ber 2007 rate, and the fore­clo­sure in­ven­tory has de­clined ev­ery month for the past 54 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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