Today RealtyTrac, a California-based online marketplace for foreclosure listings, released its 2006 U.S. Foreclosure Market Report. According to the data, foreclosures are up nationwide to the tune of 42 percent over 2005. This amounts to one out of every 92 U.S. households filing for foreclosure.
The numbers for individual markets are especially revealing. Detroit had the distinction of being the top Metropolitan Statistical Area (MSA) in the country with regard to the number of foreclosure filings. One out of every 21 households in the Detroit area filed for foreclosure in 2006, for a total of 4.9 percent. This may not seem a surprise given the slow downs in the auto industry. Today Ford announced that in 2006 the company posted its largest annual loss in company history.
It was also not a surprise to see the overheated markets of Denver, Fort Lauderdale and Miami make the top 10 with foreclosure filing rates of 4.2, 2.8 and 2.8 percent respectively. However, even some of the more promising markets in the U.S. in terms of rental rates versus purchase prices ended up in the top 10, including Atlanta, Dallas and Fort Worth.
Foreclosure rates remain lower than past historical highs, according to 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 re-set, we saw a surge to finish the year, with the fourth quarter producing more foreclosure filings than any of the three previous quarters,” Saccacio said in a PR newswire press release.
It appears that the number of foreclosure filings may still climb before reaching its apex. Will it spell slowdowns or opportunities in local MSAs across the country? Only time will tell, but likely both will occur.
Top 10 Foreclosure Rates for MSAs in 2006:
|
Average House Prices in Q1 of 2007
|
|
MSA
|
2006 Filings
|
Foreclosure Rate
|
Houshold Rate
|
|
Detroit
|
40,219
|
% 4.9
|
1 in 21
|
|
Atlanta
|
63,737
|
% 4.4
|
1 in 23
|
|
Indianapolis
|
27,598
|
% 4.3
|
1 in 23
|
|
Denver
|
37,412
|
% 4.2
|
1 in 24
|
|
Dallas
|
51,730
|
% 3.9
|
1 in 26
|
|
Fort Worth
|
25,625
|
% 3.7
|
1 in 27
|
|
Las Vegas
|
19,578
|
% 3.3
|
1 in 31
|
|
Memphis
|
18,155
|
% 3.2
|
1 in 31
|
|
Fort Lauderdale
|
21,113
|
% 2.8
|
1 in 35
|
|
Miami
|
24,046
|
% 2.8
|
1 in 35
|
*Source: RealtyTrac
