Foreclosure Figures March Ahead
May 15th, 2008
Despite various measures foreclosure figures are marching ahead. It went up in April from March and was a staggering 65% jump from what it was a year ago. In April the total was 243,353 marking a 4% increase from the previous month. The numbers are inclusive of all the stages of foreclosures.
RealtyTrac started collecting data from 2005. Since then April figures are the highest in any one-month. In April for every 519 houses in the country there was one foreclosure house. In March foreclosure postings had risen by 5% from February. Since the Great Depression of the 1930s American has not seen such a downturn in the real estate market.
With more foreclosures coming in, the number of houses sitting on the shop shelves waiting to be sold is increasing. Nationwide the foreclosure rate might be 2% according to RealtyTrac. The hardest hit regions are California, Nevada and Arizona.
As regards foreclosure rate Nevada topped the ranks with a 5% month-over-month jump. The proportion in Nevada in April was 1:146. Close on its heels follow California and Arizona. During the boom years (2000 – 2005) all three states were the centre points of frenetic housing activity. In April Nevada had 7,276 foreclosure postings – it being an increase of 95% from the April of the previous year.
During the past year default as well as foreclosure numbers have increased by leaps and bounds. In contrast housing markets fell rapidly. Many house owners could not afford the increased interest rates. The fall in housing prices further mired the situation as they could not sell off the houses and pay off the loans. This was because more often than not the value of the house calculated to be less than the loan amount. This prevented modification or sale.
However foreclosure activity in California fell by less than 1% from March 2008. Nevertheless it still ranks as one of the toppers in the national foreclosure race. The ratio is 1:204. California is the most populous state in the country. It had 64,683 foreclosures notified – the largest figure in any state. It is a jump of 112% from April of the previous year.
Rising foreclosures mean less tax collections. This is endangering the municipal budgets. The case of Vallejo in California can be cited as an example. It ranked 6th nationally as regards foreclosures. The city council has been compelled to file for bankruptcy.
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