Foreclosure Rates at High Among Florida Home Loans
RealtyTrac recently released the 2005 U.S. Foreclosure Market Report, which showed that 846,982 properties nationwide entered some stage of foreclosure in 2005 - along with a 25 percent increase in the number of new foreclosures from the first quarter to the fourth quarter.
“Overall U.S. foreclosure numbers climbed steadily over the course of the year, with more new foreclosures reported in every quarter,” said James J. Saccacio, chief executive officer of RealtyTrac. “This trend appears to be moving the real estate foreclosure market back to its historic levels.”
Despite this increase in forcloseed homes, it’s important to remember that it represents less than 1% of all U.S. households. Moreover, the increase in U.S. foreclosures from Q3 to Q4 was just below 5 percent.”
Other Repots Highlights Included:
* Despite a 29 percent decrease in new foreclosures from the first quarter to the fourth quarter, Florida documented the nation’s highest foreclosure rate and accounted for more than 14 percent of the nation’s new foreclosures in 2005. The state reported 121,843 properties entering some stage of foreclosure - 1.67 percent of the state’s households.
* New foreclosures in Colorado decreased 4 percent from the first quarter to the fourth quarter, but the state’s annual foreclosure rate ranked second highest nationwide thanks to consistently high foreclosure numbers throughout the year. A total of 29,630 Colorado
properties entered some stage of foreclosure in 2005 - 1.62 percent of the state’s households.
* 1.5 percent of Utah households entered some stage of foreclosure in 2005, the nation’s third highest annual foreclosure rate. The state reported 11,536 properties entering some stage of foreclosure during the year, but new foreclosures dropped 27 percent from the first quarter to the fourth quarter.
* New foreclosures in Texas increased 54 percent from the first quarter to the fourth quarter, and the state documented the nation’s fourth highest annual foreclosure rate. A total of 115,643 Texas properties entered some stage of foreclosure in 2005 - 1.44 percent of the state’s households and more than 13 percent of the nation’s new foreclosures in 2005.
“Over the past few years, we’ve seen historically low mortgage rates, consistently escalating home prices and steady, strong employment,” Saccacio said. “This has translated into relatively low levels of foreclosure properties - particularly bank-owned properties.”
However, with interest rates rising and an apparent slowing of property valuations in most markets, experts will be watching closely to see if there’s a material effect on the number of foreclosures in 2006. As it stands now, Florida home loans comprise the highest foreclosure rate in the nation, but recent attempts at affordable housing are aimed at fixing this problem.
