Foreclosures declined slightly from June to September 2016. | Courtesy of the Metropolitan Housing Coalition

The housing market in Kentucky is continuing to recover from the national foreclosure crisis, according to two recent reports.

The Federal Reserve Bank of St. Louis released its quarterly report on the housing market the Thursday before Christmas as well as special report that looked more broadly at the impact of the foreclosure crisis on different states. The Metropolitan Housing Coalition in Louisville also recently released its annual “State of Metropolitan Housing Report” that looks specifically at Jefferson County and several surrounding counties.

In September, 2.9 percent of loans in Kentucky were “seriously delinquent,” meaning people were behind 90 days or more on their payments, or were in foreclosure, the St. Louis Fed reported. Kentucky’s rate was slightly higher than the national rate for September, which was 2.79 percent.

The numbers are improving, however. The number of seriously delinquent loans declined 5 basis points in Kentucky from June to September 2016, according to the St. Louis Fed report. (A basis point is equal to one one-hundredth of one percentage point.)

Despite this, the St. Louis Fed’s special report noted that the foreclosure crisis hadn’t completely ended in some states, including Kentucky. Illinois, Indiana, Kentucky and Mississippi may be a year or more away from completely exiting the foreclosure crisis, the report states.

It also concluded that Indiana, Kentucky and Mississippi might have been in a foreclosure crisis for about 15 years. According to national benchmarks, the crisis started during the fourth quarter of 2002 for Kentucky and during the first half of 2001 for Indiana and Mississippi, the report states. Indiana and Kentucky are expected to emerge from the crisis in the third quarter of 2017.

West and southwest Louisville has higher rates of seriously delinquent mortgages. | Courtesy of Federal Reserve Bank of St. Louis

“The conclusion that the foreclosure crisis has been a long, miserable experience for many is unavoidable. And many Americans continue to suffer lasting financial, emotional and even physical pain as a result of their experiences during this time. However, a look at the data today shows that, at least, the end is in sight,” Bill Emmons, an assistant vice president and economist at the St. Louis Fed, said in the report.

The Metropolitan Housing Coalition report echoes the St. Louis Fed’s findings, despite the fact the most recent data in the 2016 “State of Metropolitan Housing Report” is from 2015 and prior.

From 2014 to 2015, the number of foreclosures in Jefferson County decreased 8 percent, to 2,251 foreclosures.

The total number of foreclosures in Louisville in 2015 is actually less than the pre-recession years of 2005 and 2006. Foreclosures are down 10 percent from 2005 and 58 percent from 2010, the year Jefferson County reported the most foreclosures, the Metropolitan Housing Report states.

“This is a positive sign for the region,” the report states.