As job growth improved in the Los Angeles-Long Beach-Glendale area, the foreclosure inventory experienced a drop at both the national and local area. According to data recently released, the foreclosure rate for the Los Angeles-Long Beach-Glendale area was 0.4 percent during the month of May. This represents a 26.1 percent decrease when compared to the same time last year. While completed foreclosures reached 4,642 last year, the total figure for the same time period this year was 4,090. In terms of homes in serious delinquency, which is defined as those that are 90 days or more past due, the figure was just 1.6 percent. This represents a 20.4 percent drop from last year.
Looking at the state as a whole, the foreclosure inventory rate for California was 0.4 percent in May, which is down by 25.2 percent when compared to the same time last year. Completed foreclosures reached 23,189 this year compared to 27,532 last year. Furthermore, homes in serious delinquency were down 18.5 percent to 1.5 percent.
At the national level, the inventory rate fell by 24.5 percent in May when compared to the same time last year. Meanwhile, the number of completed foreclosures fell by 6.9 percent to 38,000. This figure also represents a 67.9 percent drop from the September 2010 peak of 117,813. Experts agree that foreclosure rates are dropping thanks to a combination of job and income growth, tight underwriting and a steady increase in home prices. Since these factors are all expected to remain in place for the rest of the year, foreclosure and delinquency rates are expected to continue falling.
Recovering from the Housing Crisis
Since the financial crisis began in September 2008, approximately 6.3 million foreclosures have been completed at the national level. Furthermore, since homeownership rates peaked during the second quarter of 2004, a total of 8.3 million homes have been lost to foreclosure. As the country continues to move beyond the housing crisis, experts agree that the focus needs to be on expanding affordable housing options while providing first-time homebuyers with access to credit in sustainable ways that will help to ensure the long-term health of the housing market.
For the month of May, the foreclosure inventory rate reached its lowest levels for any month since October 2007. As of May, the national foreclosure inventory represented 1 percent of all homes at 390,000. During the same time last year, this figure was at 1.3 percent with 517,000 homes. The number of mortgages in serious delinquency has also fallen by 21.6 percent when comparing year-to-year figures. In all, 1.1 million mortgages were in serious delinquency in May 2016, representing 2.8 percent of homes. These figures represent the lowest delinquency rates since October 2007.
Despite the drops in foreclosure rates, California is still among the top five states with the highest number of foreclosures. The top five include:
- Florida (63,000)
- Michigan (45,000)
- Texas (27,000)
- Ohio (23,000)
- California (23,000)
Together, these five states account for nearly half of all completed foreclosures in the country.
To learn more about California housing market statistics, contact our team of luxury real estate experts. We specialize in real estate in Southern California’s most exclusive communities.
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(all data current as of 7/23/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.