RISMEDIA, September 15, 2009—RealtyTrac, one of the leading online marketplaces for foreclosure properties, released its August 2009 U.S. Foreclosure Market Report, which shows foreclosure filings—default notices, scheduled auctions and bank repossessions—were reported on 358,471 U.S. properties during the month, a decrease of less than 1% from the previous month, but still an increase of nearly 18% from August 2008. The report also shows one in every 357 U.S. housing units received a foreclosure filing in August.
“The August report demonstrates that there is still an ample supply of properties filling the foreclosure pipeline even while the outflow of bank-owned REO properties onto the resale market is being more carefully regulated,” said James J. Saccacio, chief executive officer of RealtyTrac. “After hitting a high for the year in July, REOs dropped 13 percent in August, but we also saw a record high number of properties either entering default or being scheduled for a public foreclosure auction for the first time.”
Nevada, Florida, California post top state foreclosure rates
With one in every 62 housing units receiving a foreclosure filing in August, Nevada continued to document the nation’s highest state foreclosure rate despite an 8% decrease in foreclosure activity from the previous month. A total of 17,902 Nevada properties received a foreclosure filing during the month, still an increase of 53% from August 2008.
Florida documented the nation’s second highest state foreclosure rate, with one in every 140 housing units receiving a foreclosure filing, and California documented the nation’s third highest state foreclosure rate, with one in every 144 housing units receiving a foreclosure filing.
A 10% month-to-month decrease in foreclosure activity helped lower Arizona’s foreclosure rate from the nation’s third highest in July to fourth highest in August. One in every 150 Arizona housing units received a foreclosure filing in August—still more than twice the national average.
Other states with foreclosure rates ranking among the nation’s 10 highest were Michigan, Idaho, Utah, Colorado, Georgia and Illinois.
Six states account for more than 60% of national total
Six states accounted for 62% of the nation’s total foreclosure activity in August despite decreasing REOs in all six states. California REOs dropped 32% from the previous month, but the state continued to post the highest overall total of any state, with 92,326 properties receiving a foreclosure filing in August. California’s total was down 15% from the previous month and was also down 9% from August 2009—the first year-over-year decrease in California foreclosure activity in RealtyTrac’s monthly reports.
A total of 62,401 Florida properties received foreclosure filings in August, the nation’s second highest state total and an increase of more than 10% from the previous month despite a 5% decrease in REO filings. Initial default notices in Florida increased 12% from the previous month, and scheduled auctions increased 13% from the previous month.
A new law in Michigan requiring lenders to file a separate public notice of default before scheduling a foreclosure auction boosted overall foreclosure activity numbers in the state for August. A total of 9,789 of the new default notices were filed after the law took effect in early August, bringing the total number of Michigan properties receiving foreclosure filings to 19,359 for the month—a 134% spike from the previous month and third highest among the states. Michigan’s foreclosure rate leapfrogged from 19th highest in July to fifth highest in August.
With 17,902 properties receiving foreclosure filings in August, Nevada posted the nation’s fourth highest total despite a 24% decrease in REO filings from the previous month, and with 17,807 properties receiving foreclosure filings in August, Arizona posted the nation’s fifth highest total despite an 11% decrease in REO filings from the previous month.
Illinois REO filings decreased 15% from the previous month, but the state’s total of 13,078 properties receiving foreclosure filings was still sixth highest among all the states in August.
Other states with totals among the 10 highest in the country were Georgia (11,947), Ohio (11,368), Texas (11,261) and New Jersey (8,316).
Three states dominate top 10 metro foreclosure rates
Foreclosure filings were reported on 14,940 Las Vegas properties in August, one in every 53 housing units—more than 6.7 times the national average and the highest foreclosure rate among metro areas with a population of at least 200,000. The city’s foreclosure activity was down 11% from the previous month but still up 48% from August 2008.
With one in every 86 housing units receiving a foreclosure filing in August, the Reno-Sparks metro area joined Las Vegas in the top 10, posting the seventh highest metro foreclosure rate.
Six California metro areas documented foreclosure rates among the top 10 in August. Stockton posted the nation’s second highest metro foreclosure rate—one in every 74 housing units received a foreclosure filing—followed by Merced at No. 3 (one in 78), Riverside-San Bernardino-Ontario at No. 4 (one in 80), Vallejo-Fairfield at No. 5 (one in 82), Modesto at No. 6 (one in 84), and Bakersfield at No. 10 (one in 94).
Two Florida metro areas documented foreclosure rates among the top 10: Orlando-Kissimmee at No. 8 with one in every 87 housing units receiving a foreclosure filing, and Cape Coral-Fort Myers at No. 9 with one in every 88 housing units receiving a foreclosure filing.
For more information, visit www.RealtyTrac.com.