Foreclosure Market Update

Let’s think about what’s going on now in the real estate market.

  • Home inventories are down
  • Several homes are receiving multiple offers
  • Financing is getting easier
  • Foreclosures and REO’s (bank owned) are getting easier to process
  • Investors are actively involved in purchasing real estate

What this all adds up to is that the real estate market seems to have turned the corner.  Homes in Wellington, Boynton Beach and Delray Beach are selling faster and prices have started to go up.

ForeclosuresLet’s have a quick review of the state of the housing market from the perspective of distressed real estate:  (These are approximations)
1) 4,000,000 owners have already lost their homes.
2) 6,000,000 owners are currently delinquent on their mortgages or are in some stage of default.
3) 11,000,000 + are currently underwater in their home mortgages.

Corelogic, a leading provider of real estate information has released a report about Foreclosures which has revealed some pretty interesting statistics. Their April report states that Nationally  the inventory of homes in foreclosure decreased 0.1 percent from what it was a year ago at this time, and has leveled off over the first four months of 2012.”

Corelogic also stated that the inventory of homes in foreclosure in judicial foreclosure states is growing, but is being more than offset by declining inventories in non-judicial states.  Non-Judicial states processing timelines to clear a foreclosure are shorter.

The five states with the highest number of completed foreclosures for 12 months ending April 2012 were:
California (142,000),
Florida (92,000),
Michigan (60,000),
Texas (58,000)
and Georgia (57,000).
These five states account for 48.8 percent of all completed foreclosures nationally.

The five states with the lowest number of completed foreclosures for the same period were:
South Dakota (62),
District of Columbia (162),
North Dakota (541),
West Virginia (598)
and Hawaii (601).

Here are some more facts from the Corelogic report:

* There were 66,000 completed foreclosures in the U.S. in April 2012 compared to 78,000 in April 2011 and 66,000* in March 2012.

* Since the start of the financial crisis in September 2008, there have been approximately 3.6 million completed foreclosures across the country.

* Approximately 1.4 million homes, or 3.4 percent of all homes with a mortgage, were in the national foreclosure inventory as of April 2012 compared to 1.5 million, or 3.5 percent, in April 2011 and 1.4 million, or 3.4 percent, in March 2012.

“There were more than 830,000 completed foreclosures over the past year or, in other words, one completed foreclosure for every 622 mortgaged homes.

All in all, as previously stated. it seems like the real estate market has turned the corner,especially in Palm Beach active adult communities, and

THAT’S A GOOD THING

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