National foreclosures increase 38 percent in first quarterMortgagePress.comNational foreclosure statistics
RealtyTrac, an online marketplace for foreclosure properties,
has released its 2006 Q1 U.S. Foreclosure Market Report, which
showed that 323,102 properties nationwide entered some stage of
foreclosure in the first quarter of 2006, a 38 percent increase
from the previous quarter and a 72 percent year-over-year increase
from the first quarter of 2005. The nation's quarterly foreclosure
rate of one new foreclosure for every 358 U.S. households was
higher than in any quarter of last year.
"The sharp increase in foreclosures in the first quarter
continues a steady upward trend that we've observed since the
beginning of last year," said James J. Saccacio, CEO of RealtyTrac.
"Foreclosures have now increased in four consecutive quarters and
are on track to go above 1.2 million in 2006, which would push the
nation's annual foreclosure rate to more than 1 percent of U.S.
households."
Saccacio noted that foreclosures actually dipped 13 percent from
February to March, evidence that the nation's foreclosure rate
could be leveling off after the long run-up.
"With the current market conditions, it's unlikely that
foreclosures will return to the historically low levels they were
at in recent years when interest rates hit rock bottom and home
price appreciation skyrocketed in many areas of the country," he
said. "But it's possible that foreclosures will flatten or even
move a bit lower this spring if more buyers and investors enter the
market, giving homeowners in distress a better chance of selling
their properties to avoid going into default or foreclosure."
Despite a 19 percent decrease in new foreclosures in March,
Georgia documented the highest state foreclosure rate in the first
quarter of 2006—one new foreclosure for every 127 households.
The state reported 24,419 properties entering some stage of
foreclosure, which is more than two times the number reported in
the previous quarter and nearly three times the number reported in
the first quarter of 2005.
Colorado's quarterly foreclosure rate of one new foreclosure for
every 138 households registered as the nation's second highest
state foreclosure rate. The state reported a total of 13,267
properties entering some stage of foreclosure in the first quarter
of 2006, which is more than twice the number reported in the
previous quarter and a 96 percent increase from the first quarter
of 2005.
With one new foreclosure for every 165 households, Indiana
documented the nation's third highest state foreclosure rate in the
first quarter of 2006. The state reported 15,261 properties
entering some stage of foreclosure, which is an 84 percent increase
from the previous quarter and more than twice the number reported
in the first quarter of 2005.
Other states with first-quarter foreclosure rates ranking among
the nation's 10 highest included Florida, Michigan, Nevada, Ohio,
Tennessee, Texas and Utah.
Texas reported the most first-quarter foreclosures of any
state—40,236—and Florida reported the second most with
29,636. California was a close third with 29,537 properties
entering some stage of foreclosure in the first quarter of 2006,
but the state's quarterly foreclosure rate of one foreclosure for
every 414 households was below the national average.
Also among the 10 states with the most foreclosures in the first
quarter were New York, which reported 13,795 properties entering
some stage of foreclosure, and Illinois, which reported 13,691
properties entering some stage of foreclosure.
RealtyTrac's statistics included properties in all three phases
of foreclosure: pre-foreclosures (notice of default and lis
pendens), foreclosures (notice of trustee sale and notice of
foreclosure sale) and real estate-owned properties (properties
foreclosed on and repurchased by a bank).
For more information, visit www.realtytrac.com.
