The number of foreclosures continues to fall but remains at a level that is higher than normal. CoreLogic reports that there were 48,000 foreclosures completed in August, down 35 percent from a year earlier. A normal market has some foreclosures, and the average was about 21,000 completed foreclosures per month from 2000 to 2006.
"We're only in the fifth inning," CoreLogic's Sam Khater says with regard to whether the market has returned to normal. For the 12 months ending in August, Florida had the highest number of completed foreclosures with 111,000, followed by Michigan with 60,000, California with 58,000, Texas with 43,000 and Georgia with 40,000. Also, the "shadow inventory," or supply of homes that are not for sale but are either in foreclosure or in severe financial distress, was at 1.9 million -- down 22 percent from a year ago and the lowest level since August 2008.