Iinventories of foreclosures accumulated during the processing slowdown in the wake of the Robogate scandal are slowing shrinking, absorbed by demand so healthy that distress sales are actually rising faster on a national basis than full-priced homes.
CoreLogic reported Monday that October prices that exclude distress sales rose only 5.8 percent while prices that include distressed sales increased on a year-over-year basis by 6.3 percent in October 2012, the biggest increase since June 2006 and the eighth consecutive increase in home prices nationally.
In a separate report, CoreLogic said that despite the demand only 58,000 foreclosures were completed in October, a year-over-year decrease of 17 percent and a decrease of 25 percent from September.
There are still 1.3 million foreclosures in the visible inventory, a decline of only 13 percent from a year ago, when there were 1.5 million backlogged in the final months before the AG settlement was reached. Some 3.9 million foreclosures that have been completed since the housing crisis began in September 2008.
With demand strong and new standards in place, the pace of foreclosure completions could pick up next year. Where this will happen is very import to investors. As time passes, the differences between markets in judicial and non-judicial states continue to increase, and a handful of markets, largely in the Midwest and Northeast, today are the hotbeds of foreclosure activity
Here’s how CoreLogic sees the geography of foreclosure completions:
- The five states with the highest number of completed foreclosures for the 12 months ending in October 2012 were: California (105,000), Florida (95,000), Michigan (68,000), Texas (59,000) and Georgia (54,000).These five states account for 49.0 percent of all completed foreclosures nationally.
- The five states with the lowest number of completed foreclosures for the 12 months ending in October 2012 were: South Dakota (19), District of Columbia (64), Hawaii (452), North Dakota (511) and Maine (643).
- The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: Florida (11.1 percent), New Jersey (7.7 percent), New York (5.3 percent), Illinois (5.0 percent) and Nevada (4.8 percent).
- The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Wyoming (0.5 percent), Alaska (0.7 percent), North Dakota (0.7 percent), Nebraska (0.8 percent) and South Dakota (1.0 percent).