Us foreclosures hit six-year low

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Across 2013, the total number of foreclosures reached 1.36 million properties, 26 per cent lower than 2012, according to RealtyTrac. One in every 96 homes reported at least one foreclosure filing in 2013, explains the report, taking the foreclosure rate down to 1.04 per cent, which is almost at the historic norm of just below 1 per cent. Indeed, compared to the 2010 peak rate of 2.23 per cent, the market improvement is considerable.

But CNN notes that the foreclosure threat is far from over for many families, with 9.3 million homes in December 2013 "deeply underwater", with borrowers owing at least 25 per cent more than their properties were worth.

"Millions of homeowners are still living in the shadow of the massive foreclosure crisis," comments Daren Blomquist, vice president at RealtyTrac. "But the shadow cast by the foreclosure crisis is shrinking as fewer distressed properties enter foreclosure and properties already in foreclosure are poised to exit in greater numbers in 2014."

Banks looking to sell off their foreclosures to speed up the market recovery are enjoying strong interest from buyers: "There is unprecedented demand from institutional investors willing to pay with cash to buy at the foreclosure auction, helping to raise the value of properties with a foreclosure filing in 2013 by an average of 10 per cent nationwide," adds Blomquist.