Foreclosures have been something we have all become familiar with over the last few years. From homeowners becoming delinquent on their mortgage payments and facing foreclosure to lenders engaging in unethical actions that resulted in foreclosure settlement agreements, everyone knows the definition of a foreclosure property.
Along with the term “foreclosure,” we have even become accustomed to other terms, such as zombie foreclosures and short sales over the last few years. All in all, the last few years have helped everyone to better understand the foreclosure process, what foreclosure properties are, and the difference in foreclosures and short sales, in addition to a wide variety of other real estate related topics.
Today, however, most people are focusing on real estate market recovery and are tracking local and national real estate market numbers to determine how quickly we are progressing toward where we were before the housing market crash.
Two of the best indicators of recovery are foreclosure activity and foreclosure inventories.
Ebbing Foreclosure Activity
One indication of real estate market progress toward recovery is a decrease in foreclosure activity. Fortunately, foreclosure activity seems to be declining at a rather significant rate. Specifically, the number of homes receiving a notice of default or with a scheduled bank auction or repossession declined 23% from the first quarter of 2012 to the first quarter of 2013. This declining foreclosure activity is great news for a real estate market that has struggled over the last few years.
Declining Foreclosure Inventory
Another indication of real estate market recovery is a declining foreclosure inventory. As foreclosure activity declines, typically the foreclosure inventory ebbs as well - this is exactly what is happening. Plus, with fewer foreclosures on the market and an increase in the demand for housing, home prices are starting to rise throughout the country.
This information taken together is great news for those who have been closely watching the real estate market for signs of an improving housing market. Couple this information with the rise in consumer and investor confidence and the real estate market is definitely taking steps in a positive direction. Throughout 2013 home prices will more than likely continue to rise as foreclosure activity and foreclosure inventories continue to decline.
In short, the number of homes entering into the foreclosure process is declining and foreclosure inventories are ebbing. If you are an investor or potential homebuyer looking for discounted properties such as foreclosures, then start searching today while these properties are still around.