Santa Barbara, CA, July 31, 2014
RealtyStore (http://www.realtystore.com), a national provider of real estate listings and property data, analyzed foreclosure data in those states experiencing the smallest reduction in foreclosure inventory through Q2, 2014 when compared to inventory levels at the same time a year ago. In aggregate, results showed 58% of REOs recorded in these areas have not yet been listed for re-sale. This slow-moving inventory of REOs hampers efforts to further reduce foreclosure inventory.
Year over year, foreclosure inventory has not declined at a uniform rate across all states. While states including Arizona, California, Florida, Nevada, and North Carolina experienced a nearly 50% reduction in foreclosure inventories over the past year, others have seen foreclosure inventory shrink at only a fraction of this rate.
Washington D.C, Washington state, New York state and Oregon have the greatest opportunity to reduce foreclosure inventory, if slow-moving REOs can be brought to market for re-sale more quickly.
On a regional basis, in the East, New Jersey, New York and Washington D.C. have seen the smallest percentage drop in foreclosure inventory, averaging a slight 15% drop in foreclosure inventory compared to last year. In the Central area, the laggards include Alabama, Kentucky, and Louisiana. These three states fared better than the East, by averaging 27% less foreclosure inventory in Q2, 2014 than Q2, 2013. Oklahoma and Montana reduced foreclosures on average by 25%, showing the least progress over the past year in reducing inventory in the Plains and Mountain regions. The West showed the greatest average regional reduction in the country since last year, but Oregon and Washington were slower to work through foreclosures, posting about 30% lower inventory from the prior year.
An important indicator for the lagging velocity of inventory reduction can be found in comparing the number of active REO listings with the number of REOs pending listing. The locations containing a higher percentage of pending REO listings will have difficulty reducing inventories, until this pending inventory can be brought to market and sold.
Compounding the inventory issue is the rate at which new foreclosures continue to be filed and added to the existing inventory. In locations where foreclosure filing activity remains relatively high, further challenges remain ahead to reduce foreclosure inventory.
By region, the areas currently holding the largest percentage of REO inventory off market and pending listing are as follow (Location, % REOs Unlisted):
o Washington D. C., 76%
o New York, 65%
o New Jersey, 58%
o Louisiana, 58%
o Alabama, 42%
o Kentucky, 31%
Plains – Mountain:
o Montana, 55%
o Oklahoma, 54%
o Washington, 67%
o Oregon, 65%
If foreclosure filing activity can remain constant or decline over time in each area, these findings suggest Washington D.C, Washington state, New York state and Oregon have the greatest opportunity to reduce foreclosure inventory in the near term by more quickly bringing more unlisted REO properties to market for re-sale.
See the accompanying graph for additional illustration and details.
RealtyStore (http://www.realtystore.com), a division of Nations Info Corporation, is the leading provider of foreclosure listings and discount property data nationwide. RealtyStore's mission is to empower its customers with the tools, education and analysis required to identify and potentially maximize profits with undervalued real estate. Collected from hundreds of public and private sources, RealtyStore's proprietary database includes over 2 million listings including pre foreclosures, foreclosures, auctions, short sales, lease option or rent to own, and owner financed listings.
REO properties referenced herein have completed the foreclosure process with a recording date on or before the date of this press release. REOs have been repossessed by a bank, lending institution or government sponsored loan guarantor such as Fannie Mae, Freddie Mac, HUD or the VA. REO title holders, inventory counts and prices in any area can vary at any time. REO counts and prices are accessed through RealtyStore’s proprietary database which is derived through hundreds of public and private data providers. Local housing market data and census data is derived from third party and public records offices.