Thursday, January 14, 2010

A Record Year for Foreclousures

And you thought the economy was getting better. Which States Had The Most Foreclosures In 2009? - The Atlantic Business Channel
Foreclosure data tracker RealtyTrac released its final 2009 foreclosure statistics today. The results, as you can probably imagine, are ugly. The U.S. had 2,824,674 foreclosed properties. That's a 21% increase from 2008 and a 120% increase from 2007.
Not surprising who won the race - where the most insanity was living.
If you want to compare total foreclosures, then California ranked #1, with 632,573 foreclosed properties. Florida followed with 516,711. Arizona was a distant third with 163,210 foreclosures.

But since California and Florida are pretty highly-populated states, it isn't necessarily fair to call them the worst, in my opinion. I'm more interested in how many foreclosures each state had per housing unit. That levels the playing field. Luckily, RealtyTrac provides that data as well. Now the worst state is Nevada, with a whopping one foreclosure for every 10 properties. Arizona follows with one foreclosure for every 16 properties. Florida is right on its heels with one foreclosure for every 17 properties.
It seems some people just didn't get in step with the easy money insanity.
Nebraska actually had 42% fewer foreclosures in 2009 than in 2008, and 49% fewer in 2009 than in 2007. The other solid performance came from North Carolina. The state had 16% fewer foreclosures in 2009 than 2008, and 2% fewer in 2009 than in 2007. Six other states had fewer foreclosures in 2009 than in 2008, but all the rest had more foreclosures in 2009 than in 2007.
2010 should be another record year with about 3 million foreclosures.

And don't expect the realty market to recover - banks are actually keeping foreclosed properties off the market, but they can't do that forever.
RealtyTrac data indicates that more than 900,000 properties nationwide are held by banks, but 450,000 of those are not on the market for sale.
Sooner or later those properties will be sold.

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