The Minnesota Homeownership Center has released its 2012 year end data which shows tht Preforeclosure notices are down. For the fourth quarter, there were only 6,937 notices issued which is 45% less than the same period in 2011! For the entire 2012 year, there were 28% few Preforeclosure notices issued than in 2011. The City of St. Paul is the only area where Preforeclosure notices have not decreased. While this is encouraging news showing that we are moving in the right direction, there are still some 40,000 homes struggling with their mortgage payments.
Compared to last year, foreclosures in Minnesota fell to levels far below last October. On the down side, filings were up slightly from September. According to Realty Trac numbers 1 in 1119 homes in Minnesota were in foreclosure compared to the nationwide average of 1 in 706. For the Twin Cities this is a 31% decrease from levels in October 2011 but a 24% increase from September. The most likely reason for the increase is the different rates of processing foreclosures since the height of the foreclosure process in 2010 and the backlog of foreclosures that needs to be put on the market. HousingLink just released their 2012 third quarter Minnesota Foreclosure Update, showing sheriff sales are down 10% from the third quarter in 2011 and down 38% from the third quarter in 2010! Overall the decline of foreclosures in the market is helping to stabilize home and is sending the market back to traditional home sales rather than distressed properties.
According to the 2012 Realtors Conference and Expo, the upward housing trend and market recovery should continue through at least 2014. Mortgage rates are forecast to rise to around 4% in 2013 and around 4.6% in 2014. With the rising housing demand and decline in housing inventory prices are also expected to continue to rise an average of about 5.1% in 2013. Home sales are also expected to increase about 8.7% in 2013.
Foreclosures and short sales will decline in their market share – in 2012 they are about 25% of the market and are forecast to be about 8% in 2014. Distressed properties are starting to be more like an after Christmas sale – the best stuff is all gone but there is still something to choose from.
People who purchased homes at low prices the last few years will see their equity grow in the next 4 years but renters will not only miss out on the equity gains, they will face rent rising at a fairly fast rate.
Preforeclosure notices seem to be on the decline! The Minnesota Homeownership Center has just released its data for the 3rd quarter of 2012. Between June and September, 10,016 homeowners were notified that they would be facing foreclosure if they did not catch up on their mortgage payments.
This is good news as it shows a 31% decline from the same period in 2011. Between June and September 2011 there were 14,586 notifications sent out.
The bad news is that there was no decrease in the number from the second to third quarter of 2012 and actually there was a slight .21% increase.
What we can take away from these numbers about preforeclosure notices is that foreclosures are slowing and declining but there is still a long road ahead.