The foreclosure crisis is ebbing away – but only in some parts of the country. Whilst most of the rest of the nation is slowly getting back on its feet, there are still five states that account for almost fifty percent of all completed foreclosures in the country. According to the latest foreclosure report from CoreLogic, the states of California, Florida, Georgia, Michigan and Texas still have some way to go before real estate gets back on its feet.
The National Association of Realtors most recent existing-home sales data for December shows that a significant 10 percent of all home sales came from foreclosures, while another four percent were by way of short sales. This isn’t good news, because forecloses are still coming up cheap, selling for an average of around 18 percent below market price, while short sale discounts averaged some 13 percent, reports RealtorMag.
However, it’s not all bad, as the total number of completed foreclosures fell by 14 percent in December 2013, compared to one year ago, says CoreLogic.
“Clearly, 2013 was a transitional year for residential property in the United States,” says Anand Nallathambi, president and CEO of CoreLogic.
“Higher home prices and lower shadow inventory levels, together with a slowly improving economy, are hopeful signals that we are turning a long-awaited corner. The housing market should continue to heal in 2014, but we expect progress to remain very slow.”
The current foreclosure inventory gives us great reason for optimism in particular. RealtorMag notes that the number of US homes in some state of foreclosure last December were down 31 percent to just 837,000, compared to 1.2 million in December 2012.
And as for the worst-performing states? Florida is right up there with 6.7 percent of all homes with a mortgage in some state of foreclosure, followed by New Jersey on 6.5 percent, New York on 4.9 percent, Connecticut on 3.6 percent, and Maine on 3.6 percent.