Reuters reports that RealtyTrac issued a report indicating that foreclosure activity fell to the lowest level since February 2007, close to the beginning of the most recent real-estate downturn. The Reuters article indicated:
Foreclosure activity – which includes default notices, scheduled auctions and bank repossessions – was seen on 144,790 properties last month, down 5 percent from March, and down 23 percent from a year earlier. It was the lowest level since February 2007….
Overall, fewer properties started the foreclosure process, falling 4 percent to 70,133, while lenders repossessed 34,997 homes, a drop of 20 percent.”
Obviously this is good news for the economy. However, some states are seeing increases in foreclosures. This is because these states have a judicial foreclosure process, and these actions have long processing times and have to be handled by the overburdened court systems. Reuters reports that there are 26 states that have judicial or quasi-judicial foreclosure states. This increase action indicates that the process is moving along in order to clear the way for a recovery.
The RealtyTrac report is promising for the real-estate market recovery and the economy as a whole. Continued interest in real-estate and homeownership has its benefits as well. The California Association of Realtors (C.A.R.) reports that a homeowner’s net worth is 45.9 times that of a renter’s.
In California, the foreclosure process is not judicial. The foreclosure rates are at their all-time lows. Since last year, we have seen more positive news being released about the housing market. With interest rates remaining low, house prices on the rise, and tightening inventory, we may be set for a recovery. C.A.R. indicates that for each home purchase, approximately $60,000 of direct and indirect spending occurs in the economy. Also, C.A.R. indicates that home sales in the U.S. generate more than 2.5 million private-sector jobs a year on average.