More than 1.2 million foreclosures reported nationally in 2006MortgagePress.comColorado, Georgia, Nevada, Texas, Michigan, Indiana, Florida, Ohio, Utah, Tennessee
RealtyTrac, an online
marketplace for foreclosure properties, has released year-end data
from its 2006 U.S. Foreclosure Market Report, which shows more than
1.2 million foreclosure filings were reported nationwide during the
year, up 42 percent from 2005, and a foreclosure rate of one
foreclosure filing for every 92 U.S. households.
"While foreclosures are not at historically high levels, a 42
percent year-over-year increase is certainly noteworthy," said
James J. Saccacio, chief executive officer of RealtyTrac. "The
increase in the number of properties in foreclosure was driven
partly by the general slowing of overall housing sales and partly
by the impact of monthly mortgage payments increasing dramatically
for homeowners who held some of the riskier types of
adjustable-rate and sub-prime mortgages. As more and more of these
loans reset, we saw a surge to finish the year, with the fourth
quarter producing more foreclosure filings than any of the three
previous quarters."
The number of total foreclosure filings rose from about 885,000
in 2005 to 1,259,118 in 2006. While that is a substantial increase,
it is still within the scope of normal historical averages,
according to Saccacio.
"It's true that foreclosures could have a negative impact on the
housing market if they continue to increase at this rate," he said.
"And in some of the more problematic local markets, they already
may be contributing to slowing home price appreciation and a glut
of homes for sale. However, most local markets have been able to
re-absorb foreclosure homes without seeing any major damage to the
local economy."
Colorado documented the nation's highest state foreclosure rate
for the year - one foreclosure filing for every 33 households, or
three percent of the state's households. The state reported a total
of 54,747 foreclosure filings during the year, an 85 percent
increase from 2005 and the eighth highest total among all the
states.
Georgia and Nevada both reported one foreclosure filing for
every 41 households in 2006, but Georgia edged out Nevada with a
slightly higher percentage of households in foreclosure - 2.5
percent compared to 2.4 percent in Nevada. Georgia reported a total
of 75,975 foreclosure filings during the year - the sixth most of
any state and a 67 percent year-over-year increase. Nevada
foreclosures surged in the fourth quarter, pushing the states total
for the year to 21,045 - nearly three times the number reported in
2005.
Other states with foreclosure rates among the nation's 10
highest included Texas, Michigan, Indiana, Florida, Ohio, Utah and
Tennessee.
Texas reported 156,876 foreclosure filings for the year, the
most of any state and nearly 13 percent of the national total. The
state consistently reported big foreclosure numbers throughout
2006, documenting the highest monthly total eight times, and
foreclosures for the year were up more than 14 percent from 2005.
Texas' foreclosure total represented nearly two percent of the
state's households - or one foreclosure filing for every 51
households - giving the state the nation's fourth highest state
foreclosure rate.
Rising foreclosure activity in the fourth quarter pushed
California's 2006 foreclosure total to the second highest among the
states. The state reported 142,429 foreclosure filings during the
year, more than twice the number reported in 2005 and accounting
for more than 11 percent of the national total. California's 2006
foreclosure rate of one foreclosure filing for every 86 households
- or 1.2 percent of households - ranked 14th among the states.
Florida's foreclosure activity remained relatively flat in 2006,
up just two percent from 2005, but the state's foreclosure total
still placed third highest among all the states. Florida reported
124,721 foreclosure filings during the year, a foreclosure rate of
one foreclosure filing for every 59 households - or 1.7 percent of
households. The state's foreclosure rate dropped to seventh highest
in 2006 after claiming the top spot in 2005. Other states with 2006
foreclosure totals among the nation's 10 highest included Colorado,
Georgia, Illinois, Indiana, Michigan, New York and Ohio.
With an average of more than 10,000 foreclosure filings in each
quarter, Detroit documented the highest annual foreclosure rate
among the nation's 100 largest metropolitan statistical areas.
Foreclosure filings in the city represented 4.9 percent of all
households - or one foreclosure filing for every 21 households. The
city's foreclosure rate was 4.5 times the national average.
Atlanta's 2006 foreclosure total of 63,737 represented 4.4
percent of the city's households - second highest among the top 100
metropolitan statistical areas and more than four times the
national average. Consistently high foreclosure filings throughout
the year helped Atlanta's foreclosure rate land in the number two
spot despite never being higher than third place in any
quarter.
Indianapolis foreclosures decreased in the second, third and
fourth quarters, but the city still documented the nation's third
highest metro foreclosure rate - with total foreclosure filings
representing 4.3 percent of all households. Other cities with
foreclosure rates among the nation's 10 highest were Dallas;
Denver; Fort Worth, Texas; Las Vegas; Memphis; Fort Lauderdale,
Fla. and Miami.
For more information, visit www.realtytrac.com.
