Daily News and Information for the Mortgage Loan Originator
National Foreclosures Decrease 16 Percent in Second Quarter
Wednesday, July 26, 2006
-
IRVINE, CA - RealtyTrac™ released its 2006 Q2 U.S. Foreclosure Market Report, which shows that 272,109 properties nationwide entered some stage of foreclosure in the second quarter of 2006, a 16 percent decrease from the previous quarter but still a 25 percent year-over-year increase from the second quarter of 2005. The nation’s second-quarter foreclosure rate of one new foreclosure for every 425 U.S. households was higher than in any quarter of last year.
“Foreclosure filings in the second quarter of 2006 present a classic ‘good news, bad news’ scenario,” said James J. Saccacio, chief executive officer of RealtyTrac. “A 25 percent increase from the second quarter of 2005 obviously isn’t a positive trend. But, despite some of the sensational reports we’ve seen lately, foreclosure filings have actually slowed down since peaking in February.”
“While the nation’s foreclosure rate has certainly shifted into a higher gear since last year, low unemployment and home price appreciation in most housing markets have held foreclosures in check,” Saccacio continued. “We forecasted a slowdown in foreclosure rates when we released our last quarterly report, and we expect that if the summer months deliver their typically high number of home buyers, the demand for housing created by these buyers should help keep foreclosure rates from rising too rapidly.”
Colorado, Georgia and Texas post highest quarterly foreclosure rates
Colorado’s second-quarter foreclosure rate of one new foreclosure filing for every 158 households ranked as the nation’s highest, leapfrogging past Georgia’s foreclosure rate, which was highest in the first quarter. Colorado reported 11,599 properties entering some stage of foreclosure during the second quarter, a 13 percent decrease from the previous quarter but a 48 percent year-over-year increase from the second quarter of 2005.
Foreclosure activity in Georgia slowed substantially in June, and the state’s second-quarter foreclosure rate - one new foreclosure filing for every 202 households - dropped to second highest among the states. The state reported 15,309 properties entering some stage of foreclosure during the quarter, a 37 percent decrease from the previous quarter but still a 42 percent increase from the second quarter of 2005.
Texas reported 39,690 properties entering some stage of foreclosure during the second quarter, the most of any state and a foreclosure rate of one new foreclosure for every 203 households - the nation’s third highest state foreclosure rate. The state’s foreclosure activity decreased 1 percent from the previous quarter but was up 22 percent from the second quarter of 2005.
Other states with second-quarter foreclosure rates ranking among the nation’s 10 highest included Utah, Indiana, Nevada, Illinois, Michigan, Florida and Ohio.
California and Florida foreclosure numbers down
After Texas, California and Florida documented the second and third most foreclosure filings of any state despite declining foreclosure activity in the second quarter. California reported 27,606 properties entering some stage of foreclosure, a 7 percent decrease from the previous quarter but more than twice the number reported in the second quarter of 2005. Florida reported 25,853 properties entering some stage of foreclosure, a 13 percent decrease from the previous quarter and a 16 percent year-over-year decrease.
Indianapolis, Atlanta, and Dallas Lead Nation in Foreclosures According to a foreclosure tracking service Indianapolis, Atlanta, Dallas, Memphis, and Denver metros top the nation in the number of foreclosures in 2006. The report also alleges that creative loans might be to blame.
Foreclosures Up 28 Percent From Last Year The Foreclosure Market Report shows 92,746 properties nationwide entering some stage of foreclosure during the month of May, an increase of 28% from May 2005. Report results also indicate a national foreclosure rate of one foreclosure filing for every 1,247 U.S. households.
Investors and Homebuyers Turning to Hot Foreclosure Market for Bargains The collective surge of foreclosures across the nation is a driving force in an otherwise sluggish real estate market, according to a six-month data analysis released by Foreclosure.com. The Foreclosure.com 2006 Mid-year Market Analysis, in fact, reveals that foreclosure properties are exchanging hands at almost twice the rate of existing home sales as a growing number of loan defaults convert to foreclosures.
Indianapolis, Atlanta, Dallas, Memphis and Denver Again Top List A national foreclosure reporting firm released its Q2 2006 U.S. Metropolitan Foreclosure Market Report, which shows Indianapolis, Atlanta and Dallas posted the nation's three highest metropolitan foreclosure rates in the second quarter of 2006, duplicating the top three metro foreclosure rates from the previous quarter.
Foreclosures up 5% Last Month, 18% From Last Year According to a national foreclosure tracking service, the national rate of foreclosures increased 5% last month from the month prior and 18% from a year earlier. Colorado, Nevada and Texas have the highest foreclosure rates.
