December 3rd, 2012
National foreclosure rates continue to weigh heavily on housing market recovery, but new data shows the situation may be improving for homeowners.
October saw 58,000 completed foreclosures during the month, compared to 70,000 during the same period in 2011, according to CoreLogic. This is also a staggering 25 percent decline from the 77,000 completed foreclosures recorded in September 2012. While these rates still remain elevated, the decline is a good sign for the overall economy.
“A lower foreclosure inventory is a good indicator of improving housing markets,” said Anand Nallathambi, president and CEO of CoreLogic. “The downward trend in foreclosure inventories over the past year is yet another signal that a recovery in housing is gaining traction.”
Despite the falling rate, there are still several obstacles in the way of full-scale recovery. Many mortgage service companies are unable to process foreclosures fast enough, leading to a backlog of distressed properties on the market. In addition, studies show that foreclosures tend to drag down the property values of surrounding homes, which can lead to negative equity for neighboring homeowners.