Data from market analysis firm RealtyTrac revealed yesterday that foreclosure activity in the United States declined further in the month of June, reaching the lowest level on record since July 2006, or about one year prior to the U.S. housing market crash. Foreclosure rates are also expected to continue declining through the first half of calendar year 2015, according to the firm.
RealtyTrac’s recently released statistics show that 107,194 properties in the U.S. were in a given stage of foreclosure in June 2014. This was good enough for a 2 percent decline from May 2014’s numbers, and a 16 percent decline from the number of properties in foreclosure in June 2013. According to RealtyTrac vice president Daren Blomquist, U.S. foreclosure statistics “should start to flatline” over the coming six to nine months, and firm up towards historical averages.
The reduction in foreclosures has been one of the main variables driving home prices upwards, as less foreclosed properties contributes to a reduction in supply. But with mortgage rates still higher than they were prior to last summer’s major spike in interest rates, this rise in prices has also contributed to a rather laggard pace of recovery for the broader U.S. housing market.
In terms of individual states, Florida still had the highest foreclosure rate in America, with Illinois, New Jersey, and Nevada rounding out the top four. A total of 47,243 properties nationwide were initially foreclosed on in June, a decrease of 18 percent year-over-year, and also the lowest number of properties entering the foreclosure process since November 2005.
Also, 13 percent less properties were put on foreclosure options, with this metric declining to 46,473 properties and reaching its lowest level since July 2006. For the first half of 2014, overall foreclosure activity is lower 23 percent from the same timeframe last year.