Foreclosure inventory plunged nearly 25 percent in April as the number of completed foreclosures — which reflect the total number of homes actually lost — fell almost 20 percent year-over-year, according to CoreLogic's latest National Foreclosure Report.
There were 40,000 completed foreclosures nationwide in April, down from 50,000 a year prior. Foreclosure levels have fallen nearly 66 percent from their peak in September 2010.
More home owners are keeping up with their mortgage payments, with the number of loans 90 days or more past due down 22 percent year-over-year, CoreLogic's report shows. About 1.4 million mortgages are "seriously delinquent," the lowest rate since February 2008.
"By mid-2011, after the Great Recession and at the trough of the house-price collapse, more than 1.5 million homes were in the foreclosure pipeline," says Frank Nothaft, chief economist for CoreLogic. "Employment recovery, foreclosure alternatives, and home-value gains have worked to reduce this inventory." The foreclosure inventory in April has fallen to one-third of its mid-2011 level, Nothaft notes.
The National Association of REALTORS® reported that distressed sales, including foreclosures and short sales, accounted for 10 percent of all existing-home sales in April, below the 15 percent share a year ago. Foreclosures sold for an average discount of 20 percent below market value in April while short sales were discounted by 14 percent.