Foreclosures Increase in the First Quarter
Foreclosures are at an all time high in the US. Along with default notices, bank takeovers were noted on 803,489 homes in the first half of this year. This is a 9% jump from the earlier quarter and a 24% increase from the first half of 2008. This means one in 159 houses has been foreclosed in this quarter.
In March, there were foreclosure filings in 341,180 homes – a 17% jump from the February figure and a 46% from that of March last year. In fact, March saw a record number of foreclosures. Foreclosure filings had become very common in new properties and that means lenders were not making filings in existing ones due to legislative delays. James J. Saccacio, CEO, RealtyTrac, said that bank repossessions have decreased on properties because of a moratorium. However, this freeze will be lifted soon.
There is a brighter side to the picture also. The first time buyers are showing interest in foreclosed homes because their prices have hit the rock bottom now. However, this increased demand for homes will not be enough to offset the rising tide of foreclosures that increase as unemployment peaks.
The highest number of foreclosures was recorded in Nevada, where one in 27 homes has been foreclosed. This is at least five times more than the national average. In this city, 41,296 homes have been foreclosed, registering a jump of 19% from the earlier quarter and a phenomenal jump of 111% from the first half of 2008. Bank repossessions have come down by 3 per cent as compared to the previous half. However, defaults have increased (27%) and so have auctions (35%).
The second highest foreclosure rate was registered in Arizona, where one in 54 homes has been foreclosed. California stood a close third, where one in 58 homes was foreclosed. Florida, Illinois, Idaho, Utah, Michigan, Georgia and Oregon were the other states where foreclosure rates were very high. Illinois registered the fifth position where
38,966 homes have been foreclosed. In fact, 60% of the nation’s foreclosures were in California, Arizona, Florida, Nevada and Illinois. In these states, 479,516 homes were foreclosed. Of the 50 states, the lowest rate of foreclosure filing was noted in Vermont. Here only one in 147,191 homes was foreclosed.
It seems foreclosures have become an important feature in the US housing market.
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