Suffolk County NY Foreclosures – Crisis Over?
Will 2014 be the year we finally say, the crisis is over for Suffolk County NY foreclosures?
According to Daren Blomquist, vice president of RealtyTrac, there is strong evidence to suggest that foreclosures are no longer a threat to the Suffolk County NY housing recovery.
The latest foreclosure data suggests the Suffolk County NY housing market is heading toward a more normal market, at least where distressed properties are concerned.
Foreclosure activity, which includes default notices, scheduled auctions and bank repossessions, declined 15% in November from the previous month, the biggest monthly drop since November 2010 when foreclosure activity plummeted following revelations of the robo-signing scandal.
Year over year, foreclosure activity was down 37%.
Suffolk County NY Foreclosures Drove Home Prices Lower
The unprecedented level of Suffolk County NY foreclosures in the wake of the housing bust drove home prices lower by more than 30% from their peak levels. In the hardest hit areas, the decline was even steeper.
After hitting a peak in 2010, foreclosure activity has been on the decline for the past three years as banks pursued other alternatives such as loan modifications and short sales to resolve problem loans.
While Suffolk County NY foreclosures are moving toward normal, there are other indicators in housing that remain depressed. Construction starts and household formation are still well below normal.
In addition, in some regions housing affordability is once again becoming an issue, as incomes remain flat, mortgage rates rise, and low availability of homes for sale are an ongoing issue. Most borrowers still have trouble getting a mortgage.
So not all is completely well with the housing market. But it is getting better.
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