CoreLogic reports 47,000 completed foreclosures in May
IRVINE, Calif. – July 8, 2014 – According to CoreLogic's just-released May National Foreclosure Report, there were 47,000 completed foreclosures nationally in May 2014, down from 52,000 in May 2013, a year-over-year decrease of 9.4 percent. CoreLogic provides data on completed U.S. foreclosures and foreclosure inventory.
On a month-over-month basis, completed foreclosures – the total number of homes actually lost to foreclosure – were up by 3.8 percent from the 45,000 reported in the revised April 2014 report. As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.
Since the financial crisis began in September 2008, there have been about 5 million completed foreclosures across the country.
As of May 2014, about 660,000 homes in the U.S. were in some stage of foreclosure, known as the foreclosure inventory, compared to 1 million in May 2013, a year-over-year decrease of 37 percent. The foreclosure inventory as of May 2014 represented 1.7 percent of all homes with a mortgage, compared to 2.6 percent in May 2013. The foreclosure inventory was down 4.8 percent from April 2014, representing 31 months of consecutive year-over-year declines.
"Significant gains have been made in the last year to reduce the foreclosure stock," said Mark Fleming, chief economist for CoreLogic. "Yet, these improvements are occurring disproportionately in non-judicial states. The foreclosure inventory in judicial states is averaging 2.1 percent, which is more than twice the 0.9 percent average that is occurring in non-judicial states."
"The pace of completed foreclosures slowed in May compared to last month but I expect this to be a temporary respite," said Anand Nallathambi, president and CEO of CoreLogic. "There is still much more hard work to do to clear the backlog of foreclosed properties. Although difficult, we need to continue to aggressively clear distressed homes to ensure the return of a healthy housing market."
Highlights as of May 2014:
-- Every state posted double-digit year-over-year declines in completed foreclosures.
-- Thirty-eight states show declines in year-over-year foreclosure inventory of greater than 30 percent with Arizona, Utah, Nebraska and Minnesota experiencing declines greater than 50 percent.
-- The five states with the highest number of completed foreclosures for the 12 months ending in May 2014 were: Florida (122,000), Michigan (44,000), Texas (39,000), California (34,000) and Georgia (32,000). These five states account for almost half of all completed foreclosures nationally.
-- The five states (including the District of Columbia) with the lowest number of completed foreclosures for the 12 months ending in May 2014 were: the District of Columbia (71), North Dakota (334), West Virginia (515), Wyoming (710) and Alaska (856).
-- The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: New Jersey (5.8 percent), Florida (5.2 percent), New York (4.3 percent), Hawaii (3.1 percent) and Maine (2.8 percent).
-- The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Alaska (0.3 percent), Nebraska (0.4 percent), North Dakota (0.4 percent), Wyoming (0.4 percent) and Minnesota (0.5 percent).
Methodology: The data in this report represents foreclosure activity reported through May 2014. The foreclosure inventory is measured only against homes that have an outstanding mortgage. Homes with no mortgage liens can never be in foreclosure and are, therefore, excluded from the analysis. About one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 85 percent coverage of U.S. foreclosure data.
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