As April real estate market reports roll in, signs of real estate market progress toward recovery are still evident as foreclosure activity continues to decline nationally. Not only are less homes being foreclosed upon (and therefore repossessed), but there are fewer homes entering into the foreclosure process as well - which is a true indication of progress.
Over the last few years, the number of homes actually being repossessed by banks remained unstable - with some months showing high numbers with other months remaining low in repossession activity. However, the ups and downs during these years were not due to recovery efforts, but were instead due to the speed of foreclosure and the delayed processes partly due to the foreclosure settlement agreements. With those agreements and delayed foreclosure processes behind us, we can finally attribute these numbers (and others, including rising home prices and declining housing inventories) to actual progress.
In fact, April numbers are incredibly positive, with the number of repossessions declining 32% from April 2012 to April 2013 and falling 20% from March to April of this year. Furthermore, the number of homes entering the foreclosure process declined 4% from March to April and 28% from April 2012.
Nevada Experiences Increase in Foreclosure Starts
Although nationally the real estate market is doing much better, there are still some states that are lagging behind others in terms of recovery. In fact, Nevada came in at number one in the list of states with the most foreclosure activity.
Specifically, Nevada has experienced a 40% annual increase in the number of homes entering the foreclosure process, which has put the state at the top of the foreclosure activity list. Not only does Nevada have the highest foreclosure activity in the nation, but also the foreclosure process is still very much delayed in the state - a shocking 400 days. Therefore, these homes that are being foreclosed upon may not even hit the market for another year. Clearly Nevada still has a long way to go to reach recovery.
Florida Has the Second Highest Foreclosure Rate
Along with Nevada, the Florida real estate market also has a long way to go before it reaches “normal.” Although many parts of Florida are experiencing a declining foreclosure inventory, the state has the second highest rate of foreclosures in the country with one in every 363 homes within the state being at some stage of the foreclosure process.
In conclusion, the nation’s real estate market as a whole is definitely making significant strides toward recovery; however, it is essential to look at the state and local real estate markets when trying to determine how far an area has to go before it reaches “normal.”
Fortunately, the real estate market outlook for the entire nation - including states like Nevada and Florida - includes continued progress toward recovery throughout the foreseeable future. Therefore, if you are an investor or potential homebuyer with an interest in purchasing foreclosures, short sales, or other distressed properties while they are still on the market, then start searching today!