Foreclosure activity in the St. Louis region dipped to its lowest level in almost three years in April, but don't break out the bubbly just yet.

Paperwork delays and slowdowns in the foreclosure process appear to be pushing down the number of reposessions, according to data firm RealtyTrac, which released its April foreclosure numbers Thursday morning.

"Lenders are taking much longer than they were just a few years ago to complete the foreclosure process," said James Saccacio, RealtyTrac's chief executive.

In Florida, for instance, the average foreclosure now takes 619 days to complete, according to RealtyTrac, compared to 470 days in the first quarter of 2010 and 169 days in early 2007. Nationwide, this trend drove foreclosures down 34 percent from last year, and down 9 percent from March.

In metro St. Louis, RealtyTrac found 1,232 homes that were either set for a foreclosure auction or repossessed in April. That's the lowest number since July 2008, and 33 percent fewer than the same month last year. April was the third month in a row that foreclosures declined year-over-year in St. Louis, and so far in 2011, foreclosure activity is down 11.3 percent.

What's not clear is what will happen next.

People are still falling behind on their loans. A separate report, out last week from Core Logic, found that 5.1 percent of St. Louis-area borrowers were at least 90 days delinquent on their mortgage in February. That's down from the peak of 5.9 percent reported in January 2010, but well above historical levels, and even the 4.1 percent seen in early 2009. And record numbers of homeowners owe more than their house is worth.

Meanwhile, home prices keep falling, giving banks even less incentive, at least in the short run, to take back houses that have bad mortgages. That's creating a glut of so-called "shadow inventory" which in turn continues to depress home prices.

It's a vicious circle, one that's been spinning for three years now. Expect it'll keep spinning for some time to come.