U.S. foreclosure inventory declined 29 percent in May from a year earlier, while shadow inventory in April -- those homes in serious delinquency -- dropped 18 percent from a year ago and 34 percent from the 2010 peak, according to a new report.
Approximately 1 million homes were in some stage of foreclosure as of May, down from 1.4 million a year earlier, a decrease of 29 percent. The foreclosure inventory accounts for 2.6 percent of all homes with a mortgage, according to the report by CoreLogic.
In May, there were 52,000 completed foreclosures, up from 50,000 in April but down from 71,000 in May 2012. Between 2000 and 2006, completed foreclosures nationwide averaged 21,000 per month.
Florida led the states with the highest number of completed foreclosures for the 12 months ending in May, with 103,000 units. California was next with 76,000, followed by Michigan with 64,000, Texas with 51,000 and Georgia with 47,000. Those five states account for almost half of all completed foreclosures nationally.
The District of Columbia had the lowest number of completed foreclosures for the same time period, with 108. It was followed by Hawaii with 453, North Dakota with 467, West Virginia with 517 and Maine with 644.
"We continue to see a sharp drop in foreclosures around the country and with it, a decrease in the size of the shadow inventory," Anand Nallathambi, president and CEO of CoreLogic, said in a statement. "Affordability, despite the rise in home prices over the past year, and consumer confidence are big contributors to these positive trends."
Keep up with your wealth and mortgages, and follow me on Twitter.
Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter.