The latest data from RealtyTrac show further deterioration in the US housing market last month, as foreclosure filings rose 5 per cent compared with the previous month and 25 per cent year-on-year. October marked the 34th consecutive month in which US foreclosure activity increased compared to the prior year.
National foreclosure filings, which include default notices, auction sale notices and bank repossessions, were reported on 279,561 US properties in October, the data tracker said.
On a state level, the numbers are a little less dismal, a change which reflects not an improved macroeconomic environment but the effect of changes in legislation and widespread attempts to modify loans and keep people in their homes.
“We’ve seen sharp declines in new foreclosure filings after legislation mandating delays to the foreclosure process was signed into law in several states – most notably in California,” James Saccacio, chief executive at RealtyTrac, said.
Default filings in California fell 44 per cent compared with October 2007. But there is a downside to these attempts, Saccacio argued.
“…without a more integrated approach that includes significant loan modifications, the net effect may be merely delaying inevitable foreclosures. And in the meantime, the apparent slowing of foreclosure activity understates the severity of the foreclosure problem in these states.”
Some lowlights from the report:
- Nevada topped the league tables with one in every 74 housing units receiving a foreclosure filing during the month, more than six times the national average. This represents an increase of 11 percent from the previous month and a jump of nearly 119 percent from October 2007.
- California posted the top foreclosure total despite a continued drop in foreclosure activity, with 56,954 forclosure filings for the month 56,954, down from a peak of more than 100,000 in August.
- Las Vegas documented the highest metropolitan foreclosure rate among the 230 metro areas tracked in the report, with one in every 62 housing units receiving a foreclosure filing in October – more than seven times the national average.
- Four Florida metro areas posted foreclosure rates that ranked among the top 10 in October, led by Cape Coral-Fort Myers and Miami in the Nos. 2 and 3 spots respectively. Other Florida cities in the top 10 were Fort Lauderdale at No. 8 and Orlando at No. 10.
Related links:
When homes are worth less than the mortgage – NYTimes interactive map
What’s driving mortgage defaults? It’s not just negative equity – FT Alphaville
Don’t forget the US homeowner – FT Alphaville