RealtyTrac: Foreclosure activity sees biggest drop in 3 years
The foreclosure inventory continued to improve in November, with 113,454 foreclosure filings — which includes default notices, scheduled auctions and bank repossessions — reported in November, down 15% from October and 37% from a year ago, the latest RealtyTrac Foreclosure Market Report found.
The 15% decrease marks the biggest month-over-month drop since November 2010 when foreclosure activity tumbled 21% in one month after the robo-signing scandal.
“While some of the decrease in November can be attributed to seasonality, the depth and breadth of the decrease provides strong evidence that we are entering the ninth inning of this foreclosure crisis with the outcome all but guaranteed,” said Daren Blomquist, vice president at RealtyTrac.
Meanwhile, a total of 52,826 properties started the foreclosure process for the first time in November, falling 10% from the previous month and 32% from a year ago to the lowest level since December 2005.
Fifteen states witnessed an increase in November foreclosures starts, with Pennsylvania, Delaware, Maryland, Oregon, and Connecticut rising 233%, 104%, 74%, 38% and 37%, respectively.
In comparison, the states that saw the highest foreclosure rates were Florida, Delaware, Maryland, South Carolina and Illinois.
“While foreclosures will likely continue to stage a weak rally in certain markets next year as the last of the distress left over from the Great Recession is dealt with, it is highly unlikely that there will be a foreclosure comeback that poses any major threat to the solid housing recovery that has now taken hold,” Blomquist said.