As the number of completed foreclosures continues to fall, CoreLogic senior analysts calculate that the nation’s foreclosure rates will be back to historical norms in approximately two years.
In a year-over-year comparison, foreclosures were down to 41,000 in November 2014, from 46,000 the year before. As of November, it was down 64 percent from the height of foreclosures in September 2010.
Prior to the housing crisis, foreclosures were averaging 21,000 per month. Current foreclosures are just barely below double, from what was considered normal. However, given the rate at which the numbers have been falling over the past several months, CoreLogic analysts are optimistic.
“At current foreclosure rates, we expect to see foreclosure inventory in the U.S. drop below 500,000 homes, sometime in the first quarter of 2015, which would be another milestone in the healing of the housing market,” said Anand Nallathambi, president and CEO of CoreLogic.
Of course, there are several other economic variables that may influence the rate of recovery. Additionally, mortgage loan approvals are also facing continued scrutiny as we work towards preventing another housing crisis. While we would like to remain optimistic, we recognize that it’s a bit too early to estimate how long the Florida foreclosure timeline will be to reach full recovery.