According to MarketWatch, using data from the real estate tracking firm RealtyTrac, foreclosures in the U.S. hit an all-time low in April, then jumped slightly (2%) in May. While the downward trend in home repossessions is expected to continue, one in 885 homes in the U.S. is currently in foreclosure, a statistic that keeps some real estate professionals up at night.
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As was the case when the housing burst in late 2007, some states have been more significantly impacted by the foreclosure crisis than others. While markets in the northeast and Midwest have remained strong, the southeast and southwest continue to struggle with high foreclosure rates. Currently, the five states in the U.S. with the highest number of foreclosures are:
- South Carolina
The top two states on the list, Florida and Nevada, don’t surprise most experts, as these two states experienced the most significant collapses in their housing markets at the onset of the recession. Both are still struggling to recover from the blow. Unemployment rates in Ohio seem to be driving the trend in foreclosures there, but home inventories are falling, which should improve the real estate marked overall. Maryland and South Carolina are also showing signs of growth in their housing sectors, despite a significant jump in foreclosures in each state in May.
Overall, the picture for the real estate market in the U.S. is getting brighter, even though recovery has been slow. While some states are still struggling to bounce back from the toughest years of the recession, most real estate experts are optimistic that an end to those troubled times are in sight.
What does the housing market look like in your state?