Michigan’s foreclosure activity drops, as nationwide number hits lowest since 2006
Is America climbing out of the foreclosure hole dug during the Great Recession?
That's the question tackled in reports from Realty Trac, which keeps a close watch on real estate data. Its Midyear 2014 U.S. Foreclosure Market Report is out today.
The report shows that U.S. foreclosure activity in June decreased 16% from a year ago to lowest level since July 2006, the month before the housing-price bubble burst. In Michigan, the foreclosure activity was also back to a lower level than the number before the housing bust.
Daren Blomquist, a Vice President with Realty Trac, discussed three reasons behind this slowdown in foreclosures.
- In many states including Michigan, the market has worked through the bad loans that triggered the foreclosure crisis.
- The rise of home prices since March 2012 has helped troubled home owners regain equity in their properties.
- Aggressive foreclosure prevention efforts have helped people avoid foreclosure.
According to Blomquist, the number will continue to go down over the next six months nationwide, and Michigan foreclosure numbers should start to flat line.
“This doesn’t mean that the market is completely healed in Michigan. However, this is one piece of the puzzle that needs to be in place for a healthy market,” Blomquist said.
* Listen to full interview above.