IRVINE, Calif. (12/10/15)--The percentage of homes in foreclosure as a share of the overall housing market continues to drop, as only 463,000 homes, or 1.2% of all mortgaged homes were in the foreclosure process in October, according to CoreLogic.

On a year-over-year basis, foreclosures during the month slipped 21.5%, while completed foreclosures plummeted 27.1% (MarketWatch Dec. 9).

Furthermore, the share of mortgages in serious delinquency, defined as a home with a mortgage more than 90 days overdue, fell to 3.4% in October, nearly an eight-year low.

“We are heading into 2016 with the lowest foreclosure inventory in eight years thanks to escalating home values and progressive improvement in the U.S. economy,” said Anand Nallathambi, CoreLogic president/CEO. “Equally encouraging is the drop in mortgage delinquency rates reflecting the stronger labor market and tighter underwriting since 2009.” 

Overall, there were 34,000 foreclosures in October, down from 51,000 in October last year.

By state, New Jersey recorded the highest percentage of foreclosures in October at 4.5%, followed by New York at 3.6%, Hawaii at 2.5%, Florida at 2.5% and Washington, D.C., at 2.3%.

The states with the lowest rates of foreclosure for the month were Alaska, Arizona, Minnesota, North Dakota and Colorado, all sitting at 0.4%.

Florida (-40.5%) and Idaho (-27.6%) experienced the greatest year-over-year declines in foreclosures.