Across the country, homeowners are looking for ways to balance their expenses and pay their mortgages on time. For many, this has become an easier task, as there are fewer foreclosures nationwide. However, even with this positive trend, there are still negatives to the housing market.
According to Black Knight Financial Services, the number of foreclosed houses ticked down on a national level in June. Short sales also decreased, now comprising only 34 percent of all distressed homes on the market. But, there is a significant difference between foreclosures in judicial and non-judicial states, with the former accounting for most of the foreclosure inventory.
"Nationally, the foreclosure inventory rate has declined for 26 straight months, and is currently at its lowest point since April 2008, but this can obscure the stark difference that remains between judicial and non-judicial states," said Kostya Gradushy, manger of research and analytics at Black Knight Financial Services. "Although judicial states account for about 42 percent of all active mortgages, some 70 percent of loans in foreclosure are in these states."
Affordability also struggles in housing market
While foreclosure levels vary across the country, many homebuyers are also running into problems with affordability, according to RealtyTrac. This is because of higher interest rates and other factors.
RealtyTrac explained that one-third of the nearly 1,200 counties analyzed for the report have higher than average income-to-price affordability. That means that they are less affordable now then they have been on average since 2000.
Daren Blomquist, vice president at RealtyTrac, noted that even as affordability ticks up there is good news. None of the counties looked at in the study have low affordability levels similar to before the most recent housing bubble.
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