Foreclosures are back to normal…. almost! Nearly seven years after the housing market collapsed, industry analysts are reporting a significant drop in foreclosures that is suggestive of a recovered housing market.
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Incredibly, the foreclosure rate has dropped 67% since its peak in September 2010. Rising home values, buyer demand (especially compared to the low inventory of homes for sale!), and improving employment rates are cited as the main reasons for fewer distressed homes. But while the share of mortgages in foreclosures remains low at 1.4%, it is more than double the 0.6% that our economy enjoyed from 2000-2004.