Skip to main content

2016 Foreclosure Inventory News. Team Thayer #realestate #housing #market #foreclosure #news #oregon

While the consistent decline in foreclosure inventory and completed foreclosures may be indicative of a healing housing market, the side effects of falling foreclosure metrics may be a cause for concern heading into the spring homebuying season.

Foreclosure inventory, or the number of homes in any state of foreclosure, is back to its pre-crisis levels. In January 2016, approximately 456,000 (1.2 percent) residential homes were in some state of foreclosure, a decline of 21.7 percent from the previous January’s total of 583,000, according toCoreLogic’s National Foreclosure Report for January 2016 released Tuesday. Foreclosure inventory has held steady at 1.2 percent since October 2015 and is at its lowest level for any one month since November 2007.
The decline in distressed properties comes with a price, however, according to the report.
“The improvement in distressed properties continues across the country in every state which is contributing to the lack of stock of available homes and resulting price escalation in many markets,” said Anand Nallathambi, president and CEO of CoreLogic. “So far the trend toward lower delinquency and foreclosures has been immune from shocks from such things as the collapse in oil prices attesting to the durability of the housing recovery.”
The National Association of Realtors’ existing-home sales report for January reported that there were 1.82 million existing homes for sale as of the end of January 2016, which was 2.2 percent lower than January 2015’s total of 1.86 million. NAR’s report also found that the existing-home sales price was $213,800 in January 2016 for all housing types (single-family homes, town homes, condominiums and co-ops) and is up 8.2 percent from the previous January’s median price of $197,600.
“The spring buying season is right around the corner and current supply levels aren't even close to what's needed to accommodate the subsequent growth in housing demand,” NAR Chief Economist Lawrence Yun said. “Home prices ascending near or above double-digit appreciation aren't healthy—especially considering the fact that household income and wages are barely rising.”
Completed foreclosures, which is a true measure of the number of homes lost to foreclosure, totaled 38,000 during the month of January, which is a decline of 16.2 percent year-over-year. It is still way above the pre-crisis monthly average of 21,000, from 2000 to 2006.Approximately 6.1 million homes have been lost to foreclosure since the financial crisis began in September 2008; since the homeownership rate peaked in 2004, approximately 8.2 million homes have been lost to foreclosure.
“In January, the national foreclosure rate was 1.2 percent, down to one-third the peak from exactly five years earlier in January 2011, a remarkable improvement,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The months' supply of foreclosure fell to 12 months, which is modestly above the nine-month rate seen 10 years earlier and indicates the market's ability to clear the stock of foreclosures is close to normal.”
3-8 CoreLogic Graph

justin lee thayer
Location: Eugene, OR 97401, USA

Popular posts from this blog

Grass Seed Video

Read more

How Far Has the Economy Fallen in a Month? Team Thayer #realestate #housing #economic ##market #news #oregon

If the  May  Wall Street Journal  economist survey  is any indication, the economy is a lot worse off than it was as recently as a month ago. In the last three surveys conducted by the  Journal  in which economists are asked when they think the Federal Reserve  will next raise the federal funds target rate, the consensus answer has been June. In April’s survey, three-quarters of economists surveyed said they believe that a rate hike by the Fed will be announced at the next FOMC meeting on June 14 and 15. May’s survey told a different story, however. Less than a third (31 percent) out of the 70 economists surveyed said they believe the rate hike will take place in June; 21 percent said they believe it will take place in July. The same percentage of economists who believe that a June rate hike will take place (31 percent) said they think it will take place in September. What happened to the economy in the last month? A couple of setbacks—first,...
Read more

When Will Bank Foreclosurews ‘Normalize’? Team Thayer #realestate #investor #housing #market #news #oregon

With much of the talk surrounding the housing market centered on “normalization” or returning to its pre-crisis state, one metric which the market is watching is the distressed sales share—the share of REO and short sales that comprise total residential home sales. For February 2016, the distressed sales share declined by 2.9 percentage points over-the-year (and 0.4 percentage points over-the month) down to 11 percent, according to  data released by CoreLogic  on Thursday. At their peak in January 2009, distressed sales accounted for nearly one-third of all residential home sales (32.4 percent) but has been declining steadily since then. By comparison, the pre-crisis share of distressed sales was typically around 2 percent; CoreLogic estimates that if the current rate of year-over-year decline continues, the distressed sales share will reach the “normal” pre-crisis level in slightly more than two years. “Prior to the housing crash, the distressed share of total...
Read more