New data from CoreLogic shows foreclosure rates in Sioux City are down further than this time a year ago.
The rate for February of 2016 was at .75 of a percent. February is the most recent month for which data is available. In 2015, the rate was at .77 of a percent. "This is about as good of a number, I think, that any lender could hope for for foreclosures," said Tonya Vakulskas with United Real Estate Solutions, Inc.
Vakulskas says those numbers show the strength of the housing market and that it ha stabilized. She's referring to the 2008 housing crisis. "People were putting themselves in mortgages they could not afford," she added.
Data from RealtyTrac says 1 in every 1,380 homes in the Sioux City gets foreclosed on.
Vakulskas said in 2014, of 1,021 homes sold, 107 were foreclosed in the city. Eight more homes sold the next year but, only 76 were foreclosed. Almost four months into 2016, only 11, she says, have been foreclosed.
The strength of the local economy is to thank for that she said."Low unemployment and we've seen some appreciation in our housing so, therefore, individuals are gaining value and equity in their homes."
The report shows that people behind on their payments compared to this time last year is down too. "We started seeing lenders really tighten up those underwriting criteria," as Vakulskas refers to the aftermath of the subprime mortgage crisis.
Home values have gone up which has allowed homeowners to have extra equity to sell she says. That is, in the event a homeowner falls behind on their payments, they could potentially sell it to stay above ground. Vakulskas notes Sioux City is a buyer heavy market.
The national rate is also lower as compared to 2015.