Foreclosure and Delinquency Rates Decline

by Simon Lindsay on Foreclosure Rates

In comparison to the first quarter of 2010, the nation’s foreclosure rate is down 27% providing great news for those hoping for a real estate market recovery. This news indicates that recovery is occurring albeit slowly.

Nevada has experienced the largest decline in the first quarter of 2011 in comparison to the first quarter of 2010 with a drop of 2.8% followed by 1.7% in Arizona and 1.3% in California. The foreclosure rate in Utah declined by 1% followed by a decline of 0.9% in both Georgia and Idaho. Michigan and Florida showed significant declines as well with 0.8% and 0.7%, respectively. Washington, D.C., West Virginia, North Dakota, and Vermont experienced a 0% decrease with all other states falling between 0.1% and 0.6%. Although the recovery looks slow, the decrease in foreclosure rates is not something to take lightly as it is indicative of real estate market growth.

Let’s take a closer look at Central Valley in California. This area has a decline in foreclosure rates for the month of March in every metro but one (Chico). Furthermore, there is also a decline in delinquency rates in Central Valley, which is an excellent indicator of progress. Specifically, the Bakersfield-Delano delinquency rate fell 4.44% for March in comparison to March 2010. Similarly, the foreclosure rate in Merced fell 0.86% from a year ago. Other areas in Central Valley have similar patterns of decrease in both foreclosure rates and delinquency rates.

The real estate market across the nation is improving with decreased foreclosure rates and even delinquency rates. Although the progress is slower than desired, this is definitely a great sign that recovery is occurring.

In the end, the housing market is on its way toward recovery and the current market marks an exceptional opportunity for those looking to invest in discounted properties and secure low interest rates on 15 and 30-year mortgages.