Though the housing recovery in the Twin Cities metro might not be as robust as some would like, the underlying fundamentals are strong. Case in point: Mortgage delinquencies have been falling steadily, which means fewer homes are falling into foreclosure. The latest report from CoreLogic shows that the foreclosure rates in the metro during July posted another healthy decline, falling to 0.52 percent from 0.95 percent last year. The delinquency rate, an indicator of future foreclosures, was down, as well (see above chart).
And foreclosure activity in the Twin Cities continues to be well below the national average, which stood at 1.66 percent during July. So while home sales have failed to keep pace with last year's levels, the number of heavily discounted distressed sales continues to fall, eliminating a formidable drag on prices. I'll have the latest home sales report for the Tiwn Cities on October 13, stay tuned.
- Jim Buchta
