Markets across the country are seeing a decline in foreclosures. A national average being at 35% less than a year ago. Are housing experts ready to say that the “bubble burst” that has so plagued the real estate market is now behind us? Not yet. CoreLogic’s June National Foreclosure Report, that gives an overall snapshot of completed foreclosures and inventory stated that there were 54,000 completed foreclosures in June and about 648,000 homes that were still in some point of foreclosure. The foreclosure inventory was at 1 million last year at this time. This record reflects a 32nd consecutive month decline. According to Mark Fleming, chief economist for CoreLogic. “While 32 straight months of year-over-year decline in the foreclosure rate is cause for celebration, the total number of homes still in the foreclosure process remains almost four times as high as the average in the early 2000's.”
What does this mean to you as a potential homebuyer/homeowner? Though there is still cause to believe we are not out of the woods yet, home values are on the rise. The S&P/Case-Shiller home price index, that measures the value of homes in the US, posted a 9.3% annual increase in May. For homeowners this is good news. The index has been up every month over the last two years. As for potential sellers and buyers experts say the rate of growth is good for the market, as a swift increase can keep some buyers out of the marketplace. An added bonus from the recovery of home prices is the influence this increase has had in a rebound of the U.S. economy.