For the past three years foreclosure filings have been on the rise; well last quarter for the first time in three years this number went into a decline. Although, the recent downturn in the market will echo for years, evident in the declined home prices (markets such as Las Vegas, Miami and Phoenix lost about 50% value), the fact that the foreclosure filings are declining is a major sign of a recovery. The Mortgage Bankers Association indicated in its latest report that Nevada, Arizona and Florida had the sharpest decline in foreclosure filings. Jay Brinkmann described this decline in foreclosures as “the beginning of the end” when describing the crisis.
However, it is not all good news. Still 15 percent of homeowners have missed at least one mortgage payment and nearly half of all delinquent borrowers are at least three months behind. Both of these statistics constitute record highs.
A “bright side” statistic is that only 3.6% of borrowers missed a payment in the last quarter of 2009 that number is down from 3.8 percent the previous quarter according to the Mortgage Banker Association. This may not seem like such a sharp decline; however, we have to take into account that this would normally be the time of the year when we would naturally see an increase in new delinquencies.
We have seen other signs of a stabilizing real estate market. We have seen inventory decline, we have seen the pending home sales index rise significantly and now we are seeing foreclosure filings drop; could this be the formula for a recovery?
South Florida Brokers & Associates, Inc.