Foreclosures in The US – Seeing Signs of Recovery

A couple of reports recently released show that foreclosures in the US are dropping, signaling signs that a housing recovery is underway. Millions of properties went to the foreclosure chopping block in the past several years as a direct result of sub-prime loan defaults brought forth by the US housing market collapse. It now seems that the worst of the crisis is over.

California Recovering

California, one of the hardest hit states during the housing market crisis, has indeed seen better days. It looks like those days are slowly coming back as a report from DataQuick Information Systems showed that foreclosure rates in the state were at their lowest since 2007. That number is a 31% reduction for the state and about a 22% reduction in San Bernardino County, one of the worst affected by the crisis.

Reason for the Decline in Foreclosure Numbers

Experts postulate that the decline in foreclosure numbers were largely due to the attitude of banks that are more inclined to favor cooperative short sales. They would go out of their way to make the foreclosed property available for viewing to prospective buyers. In some scenarios, the banks would even give reimbursements to a seller when they are able to close a deal.

New Home Construction Up

Another sign that foreclosures are going out of fashion is the number of new construction. Analysts say that based on their collected data, new home construction is steadily rising since February of this year and is projected to continue that upward climb. They attribute this positive development on the very low mortgage rates offered by the government in order to spur new home investment, home prices becoming less volatile, and a rising shortage of foreclosed properties.

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