The monthly foreclosure report is out from mortgage data and analytics provider CoreLogic (CLGX). And for those who rely on a healthy foreclosure pipeline to sell property, the results show yearly inventory is down by more than one-third.
Last year in July, 976,000 homes in the United States were in some stage of foreclosure. In July 2014, a comparatively fewer 640,000 homes are now in the foreclosure inventory, compared to 976,000 in July 2013.
“The stock of distressed debt continues to rapidly decline, especially in western states,” said Sam Khater, deputy chief economist at CoreLogic. “The number of seriously delinquent loans fell by more than 25 percent from the prior year in 10 states and seven of those states were in the west.”
The foreclosure inventory as of July 2014 made up 1.6% of all homes with a mortgage, compared to 2.4% in July 2013. The foreclosure inventory was down 3.3% from June 2014, representing 33 months of consecutive year-over-year declines.
“Based on current trends, the overall foreclosure inventory could trend down to as low as 500,000 homes by year-end which is very positive news for the housing market. The picture is considerably brighter in the non-judicial states which maintain consistently lower foreclosure stocks and, in general, lower levels of serious delinquency,” said Anand Nallathambi, president and CEO of CoreLogic. “In total, there are now 36 states with an inventory of foreclosed homes lower than the national rate of 1.7%.”