America’s foreclosure analysts are in agreement that the rate of foreclosures is leveling out across the country, but will not be declining soon.
One leading online analyst has reported that foreclosures were 9% down in April compared to March across the States, adding that this was the clearest evidence yet that the rate had reached a plateau, and could start going down. Other positive news that they reported was that the April rate was 2% down year on year too – the first countrywide annual drop since the current round of property market troubles began.
This opinion was echoed by another leading reporter of American property data – according to the firm April 2010 bank repossessions and advertised auction sales affected just 333,837 American properties, similarly 9% down from the previous month and a drop of 2% year on year.
The company’s Chief Executive summarized the current position as follows:
While these were two important milestones indicating that foreclosure activity had begun to plateau, it would not drop from current heights soon
April was the first month since the crisis began that showed an annual decrease in American rates of foreclosure
Actual bank repossessions continued at a record monthly high, while up the pipeline notices of default were substantially less both on a yearly and a monthly basis.
These trends would most likely proceed for most of 2010, with the period characterized by surges of activity as unrelenting lenders disposed of backlogs as they could.
A third well-known analyst has been quoted as saying that for the first time in the current crisis, a greater number of foreclosed properties are completing the cycle than are the new ones entering it.
Although banks in historically hardest hit States like Arizona, California, Florida, Nevada and Texas continued to have high inventories of foreclosed property, several did see noteworthy decreases. This further confirms the claim that the pipeline is now receiving less than it is discharging. While the ratio in favor of the back end of the process is at least partly due to increasing foreclosure completions by both government lending agencies and banks, the stabilizing opening notices served is hard evidence of a steadying of the market.
This does not however mean that the rate of new foreclosures will drop soon – the ongoing recession and accompanying unemployment is still a determining factor, especially in troubled economies as still exist in Idaho, Michigan and Utah (and Georgia, Illinois> and Massachusetts to a lesser degree as well).
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