Housing

New Jersey Is Top State for Foreclosed Properties

Foreclosed home
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In the month of October, 41,000 U.S. home foreclosures were completed, down 34% month over month and down 26% from 55,000 in October of 2013, according to research firm CoreLogic. The number of foreclosures has finally dropped to less than double the 2000 to 2006 average of 21,000 foreclosures per month. CoreLogic notes that the foreclosure inventory totals 1.6% of all homes with a mortgage in the United States, down from 2.3% in September of 2013.

The number of U.S. homes currently in some stage of foreclosure totals 607,000, compared with 875,000 in October a year ago. That represents a decline in the national foreclosure inventory of nearly 31% compared with October 2013. Month over month, the foreclosure inventory dropped 1.6%.

The five states with the highest number of completed foreclosures in the past 12 months were Florida (118,000), Michigan (45,000), Texas (36,000), California (29,000) and Georgia (28,000). The five states with the fewest foreclosures in the 12 months through October were South Dakota (59), District of Columbia (70), North Dakota (257), West Virginia (515) and Wyoming (574).

The five states with the largest inventories of foreclosed properties as a percentage of mortgaged properties are New Jersey (5.5%), Florida (4.1%), New York (4.1%), Hawaii (2.9%) and Maine (2.6%). The five states with the lowest inventories of foreclosed properties are Alaska (0.4%), Minnesota (0.5%), Nebraska (0.5%), North Dakota (0.5%) and Wyoming (0.5%).

CoreLogic’s deputy chief economist said:

While there has been a large improvement in the reduction of foreclosure inventory, completed foreclosures remain high and serve as one of the obstacles to new single-family construction. Until the flow of completed foreclosures declines to normal levels, new-home construction will not pick up because builders have little incentive to compete with foreclosure stock.

According to CoreLogic, the 12-month total of completed foreclosures is at its lowest level since October 2007 and has declined every month for the past 36 months.

ALSO READ: 30-Year Fixed Mortgage Loan Rates at Lowest Since May 2013

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