Foreclosures Skyrocket 19% in May
RealtyTrac®, the leading online marketplace for foreclosure properties, released its May 2007 U.S. Foreclosure Market Report, which shows a total of 176,137 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported during the month, up 19% from the previous month and up nearly 90% from May 2006. The report also shows a national foreclosure rate of one foreclosure filing for every 656 U.S. households during the month.
RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure and foreclosure properties, with over 900,000 properties from nearly 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal.
“After a barely perceptible dip in April, foreclosure activity roared back with a vengeance in May,” said James J. Saccacio, chief executive officer of RealtyTrac. “Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year. Certainly not every community nationwide is seeing an increase in foreclosures, but foreclosed properties are becoming more commonplace and adding to the downward pressure on home prices in many areas.”
Nevada, Colorado, California Post Top Foreclosure Rates
Nevada registered a May foreclosure rate of one foreclosure filing for every 166 households — the nation’s highest for the fifth month in a row and nearly four times the national average. The state reported a total of 5,235 foreclosure filings during the month, a 40% increase from the previous month and nearly five times the number reported in May 2006.
Colorado documented the nation’s second highest state foreclosure rate, one foreclosure filing for every 290 households — 2.3 times the national average. The state reported 6,321 foreclosure filings, a nearly 9% increase from the previous month and an increase of more than 50% from May 2006. The state’s foreclosure total was eighth highest among the states.
California foreclosure activity increased 30% from the previous month and more than 350% from May 2006, boosting the state’s foreclosure rate to third highest in the country. California documented one foreclosure filing for every 308 households, more than twice the national average.
Other states with foreclosure rates ranking among the nation’s 10 highest in May were Florida, Ohio, Arizona, Georgia, Michigan, Indiana and Connecticut.
California, Florida, Ohio Document Largest Foreclosure Totals
For the fifth straight month California reported the most foreclosure filings of any state, with 39,659 in May. Florida reported 21,704 foreclosure filings, the second biggest state total. Foreclosure activity in Florida increased 52% from the previous month and 144% from May 2006, raising its foreclosure rate to one foreclosure filing for every 336 households — fourth highest among all the states.
With 13,214 foreclosure filings reported in May, Ohio documented the nation’s third highest state total for the third month in a row. The state’s foreclosure activity increased 16% from the previous month and more than 150 percent from May 2006, resulting in a foreclosure rate of one foreclosure filing for every 362 households — fifth highest among the states and 1.8 times the national average.
Other states with foreclosure filing totals among the nation’s 10 highest in May were Texas, Michigan, Georgia, Illinois, Colorado, Arizona and Nevada.
California Cities Dominate Top Metro Foreclosure Rates
The cities with the nation’s top three metropolitan foreclosure rates were all located in California, and three other California cities also documented foreclosure rates among the top 10.
A 49 percent increase in foreclosure activity ensured that Stockton, CA, would continue to register the highest metropolitan foreclosure rate. The city reported one foreclosure filing for every foreclosure filing for every 88 households — nearly 7.5 times the national average.
Merced, CA, documented the second highest metro foreclosure rate, one foreclosure filing for every 100 households, followed by Modesto, CA, with one foreclosure filing for every 118 households. Other California metros in the top 10 were Riverside-San Bernardino at No. 5, Vallejo-Fairfield at No. 6, and Sacramento at No. 7.
Other cities in the top 10 were Las Vegas at No. 4, Denver at No. 7, Detroit a No. 8, and Miami at No. 10.