Morning Briefing: Foreclosures down 23.8 per cent

by Steve Randall10 Feb 2016
Foreclosures down 23.8 per cent
Foreclosure inventory dropped 23.8 per cent in December compared to a year earlier according to data from CoreLogic. The approximately 433,000 homes represents 1.1 per cent of all homes with a mortgage and is down from 1.5 per cent in December 2014 and is the lowest level since November 2007.

Completed foreclosures were down 22.6 per cent year-over-year to 32,000 and mortgages in serious delinquency were down to 1.2 million, 3.2 per cent of the total and a 23.3 per cent drop from December 2014.

“Reflecting on the full-year foreclosure results for 2015, we can see that completed foreclosures are down more than 20 percent for the year, which is the lowest level since 2006, before the crisis,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Maryland, which can be described as a suburb of the solid D.C. market, led the way with a 59-percent decline in foreclosures in 2015.”
Fitch warning over San Francisco housing
The housing market in San Francisco is in danger of correction because house prices have risen to a level “unsupportable by income” according to ratings agency Fitch. With prices now at 62 per cent above the post-crisis low of 2012, the firm says that the city’s housing market is 16 per cent over-valued. Median income has only risen by 44 per cent since the last peak. Although mortgage rates continue to be low Fitch warns that the area is “more dependent on equity incentives” and is therefore at a greater risk than most of the US.
Massachusetts pending sales start the year sharply higher
Pending sales of single-family houses in Massachusetts were 39.7 per cent cent higher than 12 months earlier at 3,914 while pending condo sales increased 34.2 per cent to 1,480.

The Massachusetts Association of Realtors reports that median prices were up slightly; 0.1 per cent for single-family houses at $330,000; 0.8 per cent for condos at $309,438.

“A still improving economy and an increase in first-time homebuyers in Massachusetts added to the buyer demand,” said 2016 MAR President Annie Blatz, branch executive at Kinlin Grover Real Estate on Cape Cod.

The association’s Realtor Market Confidence Index increased for the 10th straight month.


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