The number of home foreclosures in the Dallas/Fort Worth market continues to experience a statistically significant decline this month, showing indications of an improving economy. Foreclosure auctions scheduled for July have 45 percent fewer homes listed, The Dallas Morning News showed, citing a report from Foreclosure Listing Service. The total of home foreclosures in the region is on its way to meeting their lowest volume since 2009.
Home equity has also improved in this specific market, as home prices rose 9 percent from March to April, according to property data from RealtyTrac. The median home sale price of a non-distressed home in the state reached $86,000, down only 8 percent from April of 2012. In May, one in every 1174 homes in Dallas County was in some state of foreclosure.
George Roddy, CEO of Foreclosure Listing Service Inc, cited loan modifications and short sales as the primary reasons behind the drastic drop in foreclosure filings by lenders in an interview with Dallas Morning News.
"Also, lenders are much more reluctant to foreclose without dotting the i's and crossing the t's," said Roddy. "That by itself slows down the process to some degree."
In addition to loan modifications and short sales, such a fall in home foreclosures can also be attributed to a strengthening economy in the Dallas/Fort Worth region as well as a rise in residential property values.
Rise in home equity means more owners are ready to sell
When a homeowner's property is in a state of foreclosure, buying a new home is unlikely to be on their minds, instead opting for renting. With a significant rise in home values, homeowners are starting to see home prices increase to meet their mortgages. Able to sell their house for enough to pay off their mortgages, homeowners may be looking to buy different property. Real estate broker Redfin recently released a report that helped to shed some light on this process.
"Lots of homeowners want to sell," said Glenn Kelman, CEO of Redfin. "And lots of people want to buy. The problem has just been agreeing on a price."
Kelman continued to cite sufficient equity as an incentive for selling, and with an improving market, an increase in listings should be anticipated in North Texas.