Foreclosure filings continue to increase in 2010, rising 8% nationally in the first six months of 2010 to nearly 2 million, compared to the same period in 2009. Almost 1.7 million properties across the country, or 1 in 78 housing units, received a foreclosure filing--which includes default notices, auctions, and repossessions--from January to June, according to Irvine, Calif.-based firm RealtyTrac’s mid-year report.
But June saw fewer foreclosure filings with a dip to 314,000, which translates into a 3% decline compared to the previous month and a 7% year-over-year drop. However, the volume of foreclosures remains high, with June representing the 16th consecutive month with more than 300,000 properties in the United States receiving foreclosure filings.
“The roller-coaster pattern of foreclosure activity over the past 12 months demonstrates that while the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market,” said James J. Saccacio, chief executive officer of RealtyTrac.
Nevada continues to be hard hit, topping the lists both for the highest foreclosure rate in June (1 in 88) and in the first six months of the year (1 in 17). Florida and Arizona are not far behind in the mid-year numbers, with filings being delivered to one in every 32 homes in Florida and one in every 30 in Arizona during the first half of the year.
In terms of overall foreclosure numbers, the highest figures come from California, where more than 341,000 properties have been involved in the foreclosure process between January and June of this year. The Golden State is followed by Florida, with more than 277,000 homes in foreclosure. Arizona trails a distant third with 91,000.
California also posted the largest single number of properties (69,000) receiving foreclosure notices in June. It was followed by Florida once again, with nearly 52,000 homes in trouble and then Michigan, where 17,000 properties are in foreclosure.
The statistics indicate the housing crisis has not ended. “The mid-year numbers put us on pace to exceed 3 million properties with foreclosure filings by the end of the year,” said Saccacio, who estimated that banks will repossess more than 1 million homes in 2010.
Jessica Porter is an editorial intern at BUILDER magazine.
Learn more about markets featured in this article: Los Angeles, CA.