The end of last decade saw the rise in home foreclosures. There were many factors involved. The rapidly declining prices of the home, risky mortgage loans and the rising rate of unemployment coerced a numerous homeowners of the Washington D.C into foreclosure during the late 2000s.
Though the foreclosure rate throughout the Washington DC area seems to have dropped considerably since those days, but it remained higher than the national average for a long time. States having the highest foreclosure rates relative to the total number of homes mortgages were New York (3.6%), New Jersey (4.5%) , Florida (2.3%) and Hawaii (2.5%) and Washington DC rounded out the top five with a 2.3 foreclosure rate as per January 2016.
This happens to be quite an improvement from where Washington was few years ago. The housing market of Washington D.C has improved in a number of ways since the Great Recession which also includes a gradual reduction in the foreclosure inventory of the state as well as the nation as a whole.
Foreclosures seem to be an unpleasant aspect of Washington DC housing market. But foreclosures also seem to represent an opportunity for the home buyers. A number of distressed properties are often listed and sold below their actual market values in order to ensure a quick bargain.
Foreclosure homes seem to have a reputation for being neglected and rightly so, and sometimes they are vandalized as well. But for those who are willing to take up a challenge and face these obstacles, Washington D.C foreclosure market could be a horizon of opportunity.
The housing market in Washington is still carrying out the procedure for clear up its eight-year old foreclosure mess and has made a considerable improvement with the foreclosure inventory nationwide in September down to a 31.3% from a year ago and the completed foreclosures down to 7% from September 2015.
The foreclosure inventory rate in the Washington Metro was a mere 0.8% down 30.1% from a year earlier and also happened to be the nation’s lowest.
The number of completed foreclosures nationwide in September were 36,000 a down 69.7% from the whopping 118,222 in September 2010 according to the data gathered by a real estate firm CoreLogic Inc.
Since the late 2008s when the financial crisis began, there have been a total 6.4 million completed foreclosures nationally and since the second quarter of 2004, the rates for homeownership increased there have been staggering 8.5 million homes lost to foreclosure according to CoreLogic’s report.
President and CEO CoreLogic, Anand Nallathambi states that during the 12 months prior to September 2016 completed foreclosures have fallen by a number more than 100,000 homes. The decline in foreclosures happens to be a stimulant in drop in vacancy which proves to be positive for homeowners and communities.
New York and Miami remain with the highest foreclosure inventory . In the statistical area, the foreclosure inventory rate includes New York City, White Plains and Jersey Planes. The rate was 2.6% this September with Kendall, Florida and Miami being 2.2%.