Over the last few years, brokers have held their breath when reading the latest Real Estate news and statistics. Rarely has the report been reassuring, especially when it came to the flood of foreclosures on the market. RealtyTrac's November report shows a light at the end of the tunnel, with foreclosure rates the lowest in seven years.
- A 15-percent drop since October. Taking into account bank repossessions, auctions and default notices, a total of 113,454 new foreclosures were filed. This is the biggest monthly drop since 2010. At the height of the housing crises, there were close to 300,000 monthly foreclosure filings.
- An average 37-percent drop since 2012. Bank-owned repossessions are actually down 48.5 percent since November 2012.
Causes and Effects
Most experts agree that improvements in the economy have affected the upswing in Real Estate. Additionally, mortgage modification loans have helped many keep up with their mortgage payments.
There's no doubt some markets are still struggling. In fact, for every 392 housing units sold in Florida, one is a foreclosure. The national rate is one in every 1,155. However, Real Estate is making a recovery. RealtyTrac's vice president referred to this time as the “ninth inning of this foreclosure crisis with the outcome all but guaranteed.” The market hasn't quite hit the low levels of filings seen in 2005; around 86,000 per month. However, the steady decline is reassuring.
As foreclosure rates decline, housing prices are rising, and demand for housing is increasing. It's now more important than ever to have a strategy for maintaining property, client and prospect lists.