It is a sure sign of both economic recovery and the recovery of the housing market when the number of foreclosed properties dwindles, strengthening the overall market. Portland, while not completely out of woods yet, has watched its foreclosure numbers drop year after year and often month after month. Many of us are still recovering from the market collapse nearly 7 years ago, so it is promising to see just how our foreclosure numbers are doing. But, this isn’t just about Portland either. Nationally the housing market is recovering and seeing large sections of the country slowly distance itself from one of the darkest days in the history of the housing market.
Just how well is the country doing, though? Well, there are currently 648k houses currently in foreclosure which is down 35% from June of 2013. What does that mean for the rest of us? It means that over the course of a year the national foreclosure inventory has dropped nearly 35% freeing up that inventory for buyers and sellers to make a profit. It also means that the percentage of all homes that are within some form of the foreclosure process is 1.7%, down 2.5% from June of 2013. This is incredible news as we are getting closer to historical averages that will signify the return to normalcy that we all crave.
Another truly remarkable statistic worth noting is that this month makes the 32nd consecutive month with year-over-year decline. When you consider that makes almost 3 full years that the market has seen the foreclosure market get smaller and smaller it should be no surprise to anyone why experts are so optimistic about the direction of real estate in this country.
However, if we want to break it down on an state-by-state basis to find out where we have the highest number of foreclosed homes and which states are doing the best we need to look no further than the graphic below the article. For starters, New Jersey (5.7%) and Florida (5%) are the states with the highest percentage of homes that are either foreclosed or are being foreclosed upon while Alaska (.4%) and Nebraska (.4%) have the lowest number of foreclosed homes. Most states lean toward the likes of Alaska than that of New Jersey or Florida as the national average is 1.7%. Of course, Oregon isn’t quite out of the woods yet as Oregon is slightly worse than average at 2%.
Oregon may appear to be slightly behind the national average but that is only because, as a nation, there have been so many big strides made. It is honestly a good problem to have when foreclosures cease to be foreclosures. Of course, many foreclosed properties were recently purchased and have gained instant equity for their buyers. That is the majesty housing market when the economy recovers in such a way. Those who saw their homes lose value are watching them gain positive equity for them year over year. Can you really say that you are surprised we’ve made such great gains? We sure can’t.