For those active or at least occasionally visiting the foreclosure market, the number of potential projects is shrinking. The foreclosure peak hit in the fall of 2010 and has been on a slow decline. Harder hit areas recovered more quickly while some spots were barely affected by the economic downturn. Real foreclosures at seven year lowestate investors took advantage of this market and seasoned investors actually welcome the news of a slowdown.

Novice real estate investors jumped into specific markets and drove up prices beyond what they should have been during that period and professionals stood on the sidelines. Now that the low-hanging fruit is beginning to shrivel and fall from the tree, the foreclosure market may be returning to a sense of normalcy.

According to real estate data firm CoreLogic* there were 41,000 foreclosures in March of 2015, down from 48,000 during the same period last year, a 15.5% decline. The 41,000 figure represented a 65.2% fall from the September 2010 high, a reduction by almost two-thirds. Delinquency rates are also falling which will lead to still fewer completed foreclosures in the near future. According to the article, the 41,000 count was the lowest in seven years. There are 542,000 available foreclosed properties.

The numbers would indicate the foreclosure investing market has waned and while that is true in terms of sheer numbers it also provides a more balanced evaluation of potential acquisitions. Investors are able to more accurately evaluate a project as it relates to cash flow and future valuations and less so of any sort of bidding war. The foreclosure inventory pool is smaller but in today’s market cooler heads are prevailing.

*Housingwire, May 12, 2015