Both completed foreclosures and the national foreclosure inventory posted sharp year-over-year declines in October.
Property information provider CoreLogic reports the number of completed foreclosures nationwide dropped by 10,000 from October 2015 to 30,000 in this past October -- down 24.9% from October 2015 and 74.7% from the peak of 118,287 in September 2010.
The foreclosure inventory, which represents the number of homes at some stage of the foreclosure process and completed foreclosures, plunged 31.5 %.
Since the financial meltdown began in September 2008, there have been approximately 6.5 million completed foreclosures nationally. Since home ownership rates peaked in the second quarter of 2004, there have been approximately 8.5 million homes lost to foreclosure.
As of October, the national foreclosure inventory included approximately 328,000, or 0.8%, of all homes with a mortgage. A year earlier, it was 479,000 homes, or 1.2%.
"Housing and labor markets improved over the past year, setting the stage for further declines in foreclosure rates across much of the nation," said Anand Nallathambi, president and CEO of CoreLogic. "Home values posted an annual gain of 5.8% through September in the CoreLogic Home Price Index, and payroll employment rose 2.4 million for the year through October."
The number of mortgages in serious delinquency -- 90 days or more past due including loans in foreclosure or REO -- declined by 24.8% from October 2015 to October 2016. One million mortgages, or 2.5%, were in serious delinquency, the lowest level since August 2007. Declines occurred in 47 states and the District of Columbia.
"Loan performance varies by the health of the local economy and housing market. Alaska, North Dakota and Wyoming, three states with energy-related job loss, experienced a rise in serious delinquency rates while all other states had a decline," said Dr. Frank Nothaft, chief economist for CoreLogic. "Although there were large declines in foreclosure rates in New York and New Jersey, both states experienced the highest serious delinquency rates in the nation, reflecting lagging home values in most neighborhoods and an unemployment rate above the national average."
- On a month-over-month basis, completed foreclosures declined by 27.5% to 30,000 in October from the 41,000 reported for September. As a basis of comparison, completed foreclosures averaged 22,000 per month nationwide between 2000 and 2006.
- On a month-over-month basis, the October foreclosure inventory was down 3.6% compared with September 2016.
- The five states with the highest number of completed foreclosures in the 12 months ending in October were Florida (51,000), Michigan (29,000), Texas (26,000), Ohio (23,000), and Georgia (20,000). These five states accounted for 36% of completed foreclosures nationally.
- Four states and the District of Columbia had the lowest number of completed foreclosures in the 12 months ending in October: the District of Columbia (212), North Dakota (278), West Virginia (407), Alaska (622), and Montana (660).
- Four states and the District of Columbia had the highest foreclosure inventory rate in October: New Jersey (2.8%), New York (2.7%), Maine (1.7%), Hawaii (1.7%), and the District of Columbia (1.6%).
- The five states with the lowest foreclosure inventory rate in October 2016 were Colorado, Minnesota, Arizona, Utah, and Michigan -- all at 0.3%.