Michigan now ranks near the bottom (best) in foreclosures

A new report by HIS Global Insight Inc. shows just how far the Michigan housing market has come along in a very short period of time.

After we had ranked at or near the top of the list of states in foreclosures for two years, Michigan is now way down the list. In fact, in the category of subprime loans that went bad, we’re in the bottom (best) 10 states.

In northern Macomb County the revival is more significant than in most parts of the state because north Macomb's big townships are seeing the return of housing construction, including homes that are "built on spec" and sold quickly.

Here’s the HIS summary:

“Michigan's housing market has regained its pulse over the past two years. Through the second quarter of 2012 prices, sales and total housing starts have all improved. However, not all news is good news and there is plenty of work to be done before the market is fully healed. Construction employment continues to drag on the economy as payrolls have dipped below their recession-era low and housing starts, prices, and sales—although climbing—are … (well below) their respective, pre-recession peaks. Demand will have to be great enough to clear the existing inventory of housing stock before it can drive significant growth in new starts and stimulate construction payrolls.”

That’s certainly not a rosy picture but who would have predicted, back in the doldrums of 2009, that we’d be at this point three years later?

Here’s a chart that shows the good news, based on figures from the second quarter of 2012:

Key Mortgage Foreclosure Statistics for Michigan
	Share of Total Loans (%)	US Average (%)	US Rank
Total Loans in Foreclosure, 2012Q2	2.8	4.3	31
Loans in Foreclosure, Begun During 2012Q2	1.1	1.0	9
Prime Loans in Foreclosure, End of 2012Q2	1.9	3.1	32
Subprime Loans in Foreclosure, End of 2012Q2	6.3	13.6	46
Subprime Loans, 2012Q2	11.5	9.5	6
Source: Mortgage Bankers Association, IHS Global Insight, Inc.

(I have no idea why we rank poorly in new loans that went bad, and I certainly have no idea why so many people are still engaging in subprime lending after everything that happened in 2008-09.)