BofA/Countrywide Foreclosures Back to February 2007 Levels

The Countrywide Foreclosure Blog reports that there are currently 5,959 foreclosed homes being offered for sale on the Bank of America/Countrywide website, down from the peak of 21,500 in November 2008, and back to levels of February 2007 (see chart above, click to enlarge).

Below are charts for the individual states that had some of the worst foreclosure problems (AZ, CA, FL and NV), showing significantly reduced levels of lender-owned (REO) properties in October 2009. In all four states (AZ, CA, FL and NV), the REO levels are at two-year lows.

Comment: Although these foreclosure data are for just one mortgage company, Countrywide was (or still is) the largest mortgage company in the U.S. and it financed 20% of home mortgages in 2006, so this reduction of foreclosed homes for sale by Countrywide to early 2007 levels provides evidence that the real estate market has recovered significantly from the fall 2008 peak in REOs. Previous CD posts have presented evidence that the real estate markets in Florida, California and elsewhere have exhibited ongoing sales gains in recent months, increases in median home prices, and reductions in inventory levels. And with 30-year mortgage rates falling to 4.87%, all of the ingredients are in place for a continued real estate recovery, along with a general economic rebound.

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About Mark J. Perry 262 Articles

Affiliation: University of Michigan

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.

He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.

Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.

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