Foreclosures Reach Seven-Year Low, Says Study

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Foreclosures Reach Seven-Year Low, Says StudyA new study from foreclosure listing company RealtyTrac, Inc. shows that the number of homes that entered the foreclosure process or got repossessed by financial institutions went down further in June, further supporting the belief that the U.S. housing market is indeed making a slow, but steady recovery.

According to RealtyTrac’s statistics, lenders started foreclosures on 57,286 homes in June 2013, the lowest number of homes foreclosure starts since 2006. The annually-adjusted number of foreclosure starts for 2013 is currently at about 800,000, which marks a significant decrease from last year’s 1.1 million.

Completed foreclosures, on the other hand, are on pace to reach about 500,000 in 2013, or approximately 25 percent less than last year’s numbers. Despite the recent increase in mortgage rates, the U.S. housing market has been spurred on by several other variables, such as an improved employment market, rising home prices and home demand and greater consumer confidence.

Despite the overall decrease in foreclosures, some of the hardest-hit states during the time of the housing market crisis and worldwide economic recession are still feeling the pinch. “It is becoming increasingly evident that while foreclosures are no longer a national problem, they continue to be a state and local market problem,” postulated RealtyTrac vice president Daren Blomquist.

Some of the states still affected by foreclosures include Florida, Nevada, Ohio and Illinois; according to RealtyTrac, homes put up for auction in Florida and other states where courts preside over foreclosures increased by 34 percent year-over-year last month.