Des Moines Real Estate Blog

Your Economist of Choice, Your Realtor of Choice

  • Adam Van Lin, Realtor
    Burnett Realty
    10200 Hickman Rd. #100
    Clive, Iowa 50325
    Cell 515.344.1068
    Fax 515.331.3401
    Licensed in Iowa

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Foreclosure and Delinquency Rates

Posted by adamvanlin on July 27, 2011

CoreLogic JUST released their May foreclosure and 90+ day delinquency rates for the Des Moines & West Des Moines areas.  The news is good, as both have shown a decrease from April.  The May foreclosure rate dropped to 2.52% from 2.57% in April.  The 90+ day delinquency rate fell to 4.51% from 4.55% in April.  Foreclosures and delinquencies are not as seasonally affected as much as prices or employment, so we can look at the month over month comparisons as opposed to the year over year comparisons.

Although both rates are falling, they are still elevated and continue to exert downward pressure on the housing market.  One popular theory on why the foreclosure and delinquency rates are dropping is because people believe the banks are not putting all the properties they own on the market.  Doing so would depress the market even further, so they are spacing out their holdings and have what’s called a larger than normal “shadow inventory”.  This should keep the foreclosure & delinquency rate from rising sharply, but they will remain elevated until this shadow inventory is cleared out.  That process could take several years.  The national foreclosure rate currently stands at 3.45%.

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