Photo: Taber Andrew Bain/Flickr
A new report from CoreLogic shows just how far the US housing market has come since the Great Recession.
According to the American financial analysis firm’s latest National Foreclosure report, American home foreclosures were down 67.9 percent in July 2015 from September 2010 — the peak since the financial crisis began in 2008 — when there were 117,225.
The 38,000 foreclosures seen in July also marked a decline in foreclosure activity year-over-year, as the same month in 2014 saw 50,000 foreclosures.
“Job market gains and home-price appreciation help to push serious delinquency and foreclosure rates lower,” said Frank Nothaft, CoreLogic’s chief economist, in the report.
July’s 38,000 foreclosures also represented a 6.2 percent monthly drop over June.
Although foreclosures have been on the decline, the US housing market still has a ways to go to reach pre-recession foreclosure levels. The report pointed out that before the housing market decline in 2007, there were an average of 21,000 foreclosures per month in the US between 2000 and 2006.
Looking at foreclosures on a state level, for the year ending in July 2015, Florida finished way ahead of the pack. The Sunshine State had 98,000 foreclosures over that period, followed by Michigan in a distant second with 47,000. At 33,000 foreclosures, Texas came third, while California and Georgia were host to 27,000 foreclosures each.
Close to half of all foreclosures in the US from July 2014 to July 2015 occurred in those five states, according to the report.
The four states with the lowest number of foreclosures during this period provide quite a contrast, especially South Dakota. It saw 33 foreclosures, the least of any state.
Meanwhile, there were just 316 foreclosures in North Dakota, 483 in Wyoming and 553 in West Virginia.
The decline in foreclosures came at a time when US home sales were at their highest in more than eight years.
As well, the report noted that mortgages that are 90 or more days past due have also declined by 23 percent year-over-year to 1.3 million in July 2015.
“The recovery in the housing market is also reflected in declining delinquency and foreclosure rates which, to some degree, reflects the progressive clearing of crisis-era loans and the benefits of tighter underwriting standards over the past six years,” said CoreLogic CEO Anand Nallathambi in the report.