“With less than a month left in 2006, we’re seeing real estate markets stabilize. The market correction is waning,” says Alexis McGee, president of ForeclosureS.com, which has been analyzing housing markets since 1992.
“Last month former Fed chairman Alan Greenspan was right when he said the worst is behind us,” adds McGee, also author of the upcoming book, “The ForeclosureS.com Guide to Making Huge Profits Investing in Pre-Foreclosures – Without Selling Your Soul.” (Wiley Publications, Spring 2007). “Weak housing markets aren’t over yet, but they’re getting stronger with the help of a drop in unsold inventories and interest rates at 45-year lows.”
All that, however, is of little solace to the nearly 877,000 homeowner’s nationwide forced into foreclosure so far this year, up 36.9% from the 640,454 for all of 2005 and 2006 isn’t over yet. Many counted on creative mortgages and low teaser rates to buy homes they couldn’t afford. Now their payments have ballooned, and combined with the generally slow or stagnant home appreciation rates, these homeowners are left with little option but foreclosure.
With several weeks left in the filing year, let’s look closer at some ForeclosureS.com numbers.
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The Southwest Update
(Includes: Arizona, Arkansas, California, Louisiana, Nevada, New Mexico, Texas, Oklahoma, Oregon, and Washington.)
Housing Economics Are Looking Up for the Southwest.
The region continues to lead the nation in foreclosures – 329,352 so far this year, up 35.3% from the 243,498 for all of 2005. But fourth-quarter filings across the board are down from third-quarter numbers.
And in some states like Louisiana, they’re down significantly – 71.8% with 771 to date this quarter compared with 2,731 for all of the previous quarter, according to ForeclosureS.com, a California based real estate investment advisory firm and publisher of foreclosure property information.
Texas: 97,696 foreclosures to date in 2006, up 23.7% over the 79,001 total for all of 2005. Fourth-quarter filings so far total 18,678, off 31.1% from the previous quarter’s 27,103.
California: Leads the nation in foreclosures with 136,444 so far this year, up 68.5% from 80,989 in all of 2005. But quarterly filings appear to have slowed – 36,051 so far fourth quarter, down almost 10% from 39,891 in third quarter.
Nevada: Filings down for the quarter so far, but the 21,550 filings so far this year are up 144.7% over 8,805 for all of 2005.
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The Northeast Update
(Includes: Connecticut, the District of Columbia, Delaware, Maryland, Pennsylvania, Vermont, Rhode Island, Massachusetts, New York, and New Jersey.)
New York Foreclosures Climb Despite Drop Elsewhere
Foreclosure filings in New York keep climbing despite easing in other parts of the Northeast.
With less than a month left in 2006, already the Empire State’s 26,424 filings are up 13% over the 23,383 for all of 2005. Quarter to quarter filings are up almost 8%, too – 7,449 fourth quarter to date vs. 6,904 in the third quarter, according to numbers from ForeclosureS.com, a California based real estate investment advisory firm and publisher of foreclosure property information.
Elsewhere in the Northeast, the foreclosure outlook is brighter quarter to quarter with high population states like New Jersey and Massachusetts showing slight drops so far.
New Jersey: 25,472 foreclosure filings to date in 2006 up 78% from the 14,311 total 2005 filings. But, fourth-quarter’s 5,503 filings to date are down almost 40% from 9,012 third-quarter filings.
Massachusetts: 21,620 foreclosures this year to date, up nearly 155% from 8,489 total filings in 2005. But, so far fourth quarter’s 4,522 filings are down 27.8% from 6,264 total third-quarter filings.
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The Southeast Update
(Includes: Alabama, Arkansas, Florida, Mississippi, Kentucky, Louisiana, Tennessee, Virginia, Georgia, North and South Carolina, and West Virginia.)
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Florida Bucks Southeast Foreclosure Trend
Florida continues to lead the Southeast Region in foreclosure filings and is second only to California in total foreclosures in the nation.
Despite a modest drop in energy prices, 107,579 Florida property owners have resorted to foreclosure so far this year, up nearly 13% from 95,269 for all of 2005, and year isn’t over. Boosting those numbers are filings in the southeastern coastal counties like Miami-Dade and Broward, according to numbers from ForeclosureS.com, a California based real estate investment advisory firm and publisher of foreclosure property information.
However, as with many other parts of the Southeast and the country, numbers for the fourth quarter to date are down from the third quarter, and the foreclosure frenzy appears to be slowing.
Georgia: As in Florida, fourth quarter to date filings are up – 8,937 vs. 6,068 for third quarter. The 47.3% increase is fueled in part by triple-digit increases in northern counties like Cobb, Gwinnet, and Walton.
Arkansas: 7,015 filings to date in 2006 are up 30.2% over all of 2005, but so far fourth quarter’s 1,440 filings are down almost 31% over the 2,085 total for the third quarter.
Kentucky: 6,063 filings to date in 2006 are up 51.4% over the 4,005 total in 2005. But fourth quarter’s 1,166 filings so far are down 45.1% over the 2,124 third-quarter filings.
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The Midwest Update
(Includes: Illinois, Indiana, Kansas, Iowa, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, and Wisconsin.)
Midwest Foreclosures Up on Auto Industry Fallout
Economic fallout from massive cuts by the nation’s sagging automakers helped fuel foreclosure filings in the nation’s midsection during the fourth quarter of the year. With less than a month left, the Midwest Region’s 193,737 foreclosure filings already are up 61% from 2005’s total 120,298 filings.
But some relief could be in site. In all but Missouri, fourth quarter filings have slowed over those in the third quarter, according to numbers from ForeclosureS.com, a California based real estate investment advisory firm and publisher of foreclosure property information.
“The foreclosure frenzy appears to be slowing,” says Alexis McGee, president of ForeclosureS.com, which has been analyzing housing markets since 1992. “With less than a month left in 2006, and despite manufacturing cuts that have hit the Midwest hard, in general we’re seeing real estate markets stabilize.”
Missouri: 14,000 filings to date in 2006, up 64.7% over 2005’s total 8,500 foreclosures. Fueled by filings in eastern central counties like Jefferson, Saint Charles, and St. Louis, fourth quarter’s 4,781 fillings to date up from 3,003 total in the third quarter.
Illinois: 68,861 foreclosure filings for 2006 to date up 73% over 2005’s 39,809 filings. But fourth quarter’s 14,814 filings to date are down 23.6% from the third quarter’s 19,389 total filings.
Michigan: 38,309 filings to date in 2006 up 75.7% over 2005’s 21,803 total filings. Fourth quarter’s 9,023 filings to date are down 21% from the 11,417 recorded last quarter. However fallout from recent auto industry cuts could change that significantly.
Our mission at ForeclosureS.com has always been to teach investors how to create win-win scenarios that benefit both the distressed homeowner and the investor” said Ms. McGee. She continued “That way, the homeowner conserves some equity for a new start, and the investor realizes a reasonable profit on resale of the property. That’s a much better solution than just standing back and seeing the owner lose everything in an auction on the courthouse steps.”
