Foreclosure Trends VERY Different in Different Markets
Last week, RealtyTrac released their Year-End 2012 U.S. Foreclosure Market Report™. The report revealed foreclosure trends over the past few years. Here are a few of the key findings:
- A total of 2,304,941 foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 1,836,634 U.S. properties in 2012, down 3 percent from 2011 and down 36 percent from the peak of 2.9 million properties with foreclosure filings in 2010.
- 1.39 percent of U.S. housing units (one in every 72) had at least one foreclosure filing during the year, down from 1.45 percent of housing units in 2011 and down from 2.23 percent of housing units in 2010.
- Foreclosure activity in 2012 increased from 2011 in 25 states — 20 of which primarily use the longer judicial foreclosure process — including New Jersey (55 percent increase), Florida (53 percent increase), Connecticut (48 percent increase), Indiana (46 percent increase), Illinois (33 percent increase) and New York (31 percent increase).
- Foreclosure activity in 2012 decreased from 2011 in 25 states — 19 of which primarily use the more streamlined non-judicial foreclosure process — including Nevada (57 percent decrease), Utah (40 percent decrease), Oregon (40 percent decrease), Arizona (33 percent decrease), California (25 percent decrease) and Michigan (23 percent decrease).
- Florida posted the nation’s highest state foreclosure rate in 2012, with 3.11 percent of housing units (one in 32) receiving a foreclosure filing during the year. Other states with top 5 foreclosure rates were Nevada (2.70 percent), Arizona (2.69 percent), Georgia (2.58 percent), and Illinois (2.58 percent).
As we can see, different markets are impacted in vastly different ways.
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This post reminds me of too many “talking head” commentaries from the mass media. These statistics are tossed out there with no more context than “judicial” and “non-judicial”. To those not directly involved in real estate or economic issues it can make “foreclosure” – used here and in many other forums as a generic term – look like a runaway train in “judicial” states where the opposite may be true. In most of these states it means that we are starting at last to make progress through the long slog through this process, and the properties that have been in the “shadows” for so long will finally see some resolution. What it does not necessarily mean is that foreclosure starts are explosively increasing in those states. Don’t expect much from the “talking heads” but I do expect something more thorough from KCM.
Hi Dave, we understand your point entirely and we are glad you hold us to such a high standard. Today’s blog post reported on the ‘numbers’ of the latest RealtyTrac Report. Over the last 90 days, we have posted ‘commentary’ on the issue several times. Here are some of the posts:
– http://www.kcmblog.com/2013/01/09/shadow-inventory-and-its-impact-on-prices
– http://www.kcmblog.com/2012/11/20/shadow-inventory-shrinkingin-most-regions
– http://www.kcmblog.com/2012/10/08/completed-foreclosures-down-in-most-states
We have also published an e-guide on shadow inventory which you can download at the following link:
http://tools.keepingcurrentmatters.com/e-books/shadowinventory
Hope this helps!