Foreclosures down in early 2011

Foreclosures have dropped 15 percent in the first quarter of 2011, reaching their lowest point since the first quarter of 2008, according to a recent report by RealtyTrac.

However, the report emphasizes that, despite falling foreclosure rates, the housing market is still suffering.

"Weak demand, declining home prices and the lack of credit availability are weighing heavily on the market, which is still facing the dual threat of a looming shadow inventory of distressed properties and the probability that foreclosure activity will begin to increase again as lenders and servicers gradually work their way through the backlog of thousands of foreclosures that have been delayed due to improperly processed paperwork," said James J. Saccacio, chief executive officer of RealtyTrac.

Some cities and states are also still having a hard time with high foreclosure rates, despite the overall decline. The report lists Nevada, Arizona and California as the states with the highest foreclosure rates, and Las Vegas remains the metropolitan area with highest number of foreclosed homes.

However, despite the continued struggles in the real estate market, things may soon be looking up in some of the metro areas most devastated by the housing crash. In an analysis for USA Today, Zillow said that even the housing market in Las Vegas appears to be bottoming out and may enter recovery soon.  

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