Foreclosures Rising Across United States

As interest rates rise, owners across the nation are beginning to feel the heat — sometimes, enough to cost them their homes. A surprising 91,905 foreclosed residential properties were available for sale in the United States during December, reports Foreclosure.com.

The number represents a jump of 12.7 percent from November. December is also showing a spike in the rate of new foreclosures listed for sale, with 24,124, an increase of 7.7 percent from November. The Southern portion of the country region led the nation with a 17.4 increase in foreclosures from November to December and a 9 percent increase in new foreclosures. The Midwest region showed the second highest percentage increases, followed by the Northeast and West.

“With lending institutions closing their books at the end of the year, it is somewhat common for the foreclosure inventory to rise. It is premature to predict that December’s inventory indicates a foreclosure crisis in the U.S.; however, this rise in inventory, which is higher than in recent years, should be closely monitored as 2006 begins,” said Brad Geisen, President of Foreclosure.com.

If factors such as waning investor confidence in the housing market, higher Florida home loan rates and a weakening sellers market continue, it is likely we will see foreclosure inventory remain high locally in the early part of 2006. Regardless of what happens in the first quarter, the current inventory represents a very strong buyer’s market for both investors and individuals. For prospective buyers, the scales may be tipping slightly in your favor.