National Foreclosures Decrease 16 Percent in Second Quarter According to RealtyTrac(TM) U.S. Foreclosure Market Report
U.S. Foreclosures Up 25 Percent From 2005
Colorado, Georgia and Texas Foreclosure Rates Are Nation's Highest
RealtyTrac(TM) (www.realtytrac.com), the leading online marketplace for foreclosure properties, today 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.
RealtyTrac publishes the largest national database of pre-foreclosure and foreclosure properties, with nearly 600,000 properties in more than 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate, AOL Real Estate and Knight Ridder Online.
"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.
With 18,690 properties entering some stage of foreclosure, Illinois reported the fourth highest number of new foreclosure filings in the second quarter. The state's foreclosure activity increased 37 percent from the previous quarter and 57 percent from the second quarter of 2005.
"One of the key factors to watch for over the next quarter is the extent to which some of the higher-risk, adjustable rate mortgages go into default," according to Saccacio. "Hundreds of millions of dollars of these types of loans are due to re-set during the rest of 2006, and if they default at a higher rate than more traditional mortgage loans, it could significantly accelerate foreclosure filings."
The RealtyTrac 2006 Q2 U.S. Foreclosure Market Report provides the total number of homes entering some stage of foreclosure nationwide and by state in the second quarter of 2006. RealtyTrac's report includes properties in all three phases of foreclosure: Pre-foreclosures -- Notice of Default (NOD) and Lis Pendens (LIS); Foreclosures -- Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been re-purchased by a bank).
U.S. Foreclosure Market Statistics by State -- Q2 2006 State Name April 2006 May 2006 June 2006 Total US 91,168 92,746 88,195 272,109 Alabama 261 366 287 914 Alaska 84 86 49 219 Arizona 1,701 1,986 2,131 5,818 Arkansas 764 784 835 2,383 California 8,839 8,736 10,031 27,606 Colorado 3,706 4,198 3,695 11,599 Connecticut 1,408 689 1,062 3,159 Delaware 17 9 80 106 District of Columbia 13 9 11 33 Florida 8,350 8,898 8,605 25,853 Georgia 5,150 5,769 4,390 15,309 Hawaii 46 131 22 199 Idaho 190 193 145 528 Illinois 6,451 6,359 5,880 18,690 Indiana 4,309 3,494 2,972 10,775 Iowa 184 175 167 526 Kansas 436 407 377 1,220 Kentucky 599 518 358 1,475 Louisiana 81 158 136 375 Maine 13 6 5 24 Maryland 427 260 466 1,153 Massachusetts 575 586 1,174 2,335 Michigan 5,269 5,066 4,853 15,188 Minnesota 457 355 543 1,355 Mississippi 44 56 54 154 Missouri 999 1,423 950 3,372 Montana 75 65 58 198 Nebraska 115 150 103 368 Nevada 1,152 1,103 1,244 3,499 New Hampshire 12 13 9 34 New Jersey 1,935 1,945 2,865 6,745 New Mexico 703 536 537 1,776 New York 4,216 4,610 3,907 12,733 North Carolina 1,847 1,672 1,343 4,862 North Dakota 5 20 9 34 Ohio 4,860 5,239 5,942 16,041 Oklahoma 1,156 1,413 1,100 3,669 Oregon 912 1,659 1,381 3,952 Pennsylvania 2,428 2,295 2,809 7,532 Rhode Island 111 101 115 327 South Carolina 684 539 607 1,830 South Dakota 32 23 16 71 Tennessee 2,613 2,442 2,404 7,459 Texas 13,829 14,506 11,355 39,690 Utah 1,418 1,112 957 3,487 Vermont 3 4 8 15 Virginia 294 346 230 870 Washington 1,638 1,511 1,440 4,589 West Virginia 50 71 76 197 Wisconsin 689 632 355 1,676 Wyoming 18 22 46 86 % Change % Change 1/every from from State Name #HH Q1 2006 Q2 2005 US 425 -15.78 24.73 Alabama 2,148 155.31 -50.46 Alaska 937 -19.78 -47.86 Arizona 376 -6.64 -23.21 Arkansas 492 -35.70 -20.51 California 442 -6.54 104.43 Colorado 158 -12.57 47.53 Connecticut 439 26.21 21.45 Delaware 3,237 32.50 -6.19 District of Columbia 8,329 22.22 -47.62 Florida 283 -12.76 -16.09 Georgia 202 -37.31 41.86 Hawaii 2,314 48.51 -5.69 Idaho 996 -30.53 -22.81 Illinois 262 36.51 57.14 Indiana 234 -29.40 49.47 Iowa 2,343 -46.22 16.63 Kansas 925 103.33 134.62 Kentucky 1,187 3.65 -16.10 Louisiana 5,022 9.97 -72.51 Maine 27,162 -44.19 -17.24 Maryland 1,858 6.66 7.96 Massachusetts 1,123 140.23 100.43 Michigan 278 -33.22 110.30 Minnesota 1,526 19.81 137.30 Mississippi 8,239 -35.02 -81.88 Missouri 723 -32.75 18.07 Montana 2,081 -37.54 10.61 Nebraska 1,953 -50.27 21.45 Nevada 248 -30.53 94.61 New Hampshire 16,089 30.77 17.24 New Jersey 491 -35.52 -26.40 New Mexico 440 -3.27 -13.83 New York 603 -7.70 28.14 North Carolina 724 -36.56 15.93 North Dakota 8,520 -47.69 -35.85 Ohio 298 -29.83 62.01 Oklahoma 407 -22.38 3.56 Oregon 368 95.16 123.15 Pennsylvania 697 -38.54 -3.77 Rhode Island 1,345 3533.33 1716.67 South Carolina 958 -28.29 -11.98 South Dakota 4,552 -6.58 44.90 Tennessee 329 -36.35 1.76 Texas 203 -1.36 22.19 Utah 220 -2.02 26.85 Vermont 19,625 -28.57 -6.25 Virginia 3,318 -16.18 61.71 Washington 521 -15.00 4.89 West Virginia 4,287 -13.97 -2.48 Wisconsin 1,374 -14.10 61.78 Wyoming 2,603 40.98 72.00 About RealtyTrac Inc.
Ranked as the third largest real estate site by MediaMetrix, RealtyTrac Inc. (www.realtytrac.com), is the leading online marketplace for foreclosure properties, providing all the resources that home seekers, investors and real estate agents need to locate, evaluate and buy properties below market value. Founded in 1996, RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure, foreclosure, For Sale By Owner, resale and new construction properties, with more than 1 million properties across the country, property reports, productivity tools and extensive professional resources. RealtyTrac hosts nearly 3 million unique visitors monthly and has been chosen to supply foreclosure data to AOL Real Estate, MSN Real Estate and Yahoo! Real Estate. For more information, visit www.realtytrac.com.
Source: RealtyTrac Inc.
