Remember these "green shoot" comments on Aug 3?
Even as Americans suffer rising unemployment, foreclosure rates in three states hit hardest by the housing bust — California, Arizona and Florida — stabilized in June, offering hope that the worst of the real estate crisis is over, according to The Associated Press’ monthly analysis of economic stress in more than 3,100 U.S. counties.
We have additional information today:
NEW YORK (CNNMoney.com) — The foreclosure plague continued to devastate last month.
There were more than 360,000 properties with foreclosure filings — including default notices, scheduled auctions and bank repossessions — an increase of 7% from June and 32% from July 2008, according to RealtyTrac, an online marketer of foreclosed homes. In fact, one in every 355 U.S. homes had at least one filing during July.
"July marks the third time in the last five months where we’ve seen a new record set for foreclosure activity," said James J. Saccacio, chief executive officer of RealtyTrac. "Despite continued efforts by the federal government and state governments to patch together a safety net for distressed homeowners, we’re seeing significant growth in both the initial notices of default and in the bank repossessions."
Look for these properties to weigh on lender balance sheets and drive prices down in devastated neighborhoods. Sales have been good this summer, but as always, they will taper off in the fall. We’ve seen a second wave of investors out there snapping up properties that won’t appreciate and often won’t have positive cash flow. When their owners walk away, things are only likely to get worse.
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I think it is becomming quite clear (at least for those of us who look beyond the headlines) that there is a new wave of foreclosures about to hit this Fall. In my zip code 92101, we have seen a huge increase in Notice of Defaults, and from my anecdotal information (realtors, HOA Boards, etc.), people are just walking away again when the NOD is filed. . .they are so underwater, that there is no hope. A few years ago I would hear around town, “when housing comes back.”. . .now I hear, “jeeze, this has been going on for 3 years, when will it end?”
Mark – yeah, no kidding. Even the small victory Doomers get to claim (we told you so!) is losing its childish appeal.
But, I’m still hopeful we’ll all be better off when this is over, financially AND socially.
Linenoise-
What’s really annoying is watching new bubbles and speculation in the foreclosure market and trying to warn people about this one. Once more we are written off as crackpot naysayers. The media continues to spotlight the same dingdongs who got it wrong the last time.
I don’t understand why the same people who got burned last time figure that they are real estate geniuses this time.
twist -
Never to be confused with this guy
twist…u weren’t completely written off. a good friend of mine just backed out of escrow after another friend and myself went over the entire situation….and he visited this site. he is begining to realize how valuable renting may be for the near future. there are still huge waves of foreclosures more than a year and a half out. these are off the top of my head…but i think FL has a 1 in 150 foreclosure rate and NV has a 1 in 50!!!! and then we can watch as commercial defaults have JUST begun….
“The number of U.S. households on the verge of losing their homes soared by nearly 15 percent in the first half of the year as more people lost their jobs and were unable to pay their monthly mortgage bills.”
The mushrooming foreclosure crisis affected more than 1.5 million homes in the first six months of the year, according to a report released by foreclosure listing service RealtyTrac.
On a state-by-state basis, Nevada had the nation’s highest foreclosure rate in the first half of the year, with more than 6 percent of all households receiving a filing. Arizona was No. 2, followed by Florida, California and Utah. Rounding out the top 10 were Georgia, Michigan, Illinois, Idaho and Colorado.
Read More: http://www.housingnewslive.com
With all these foreclosures and job losses, I am confused why the stock market is soaring. I have a feeling that will tank also in the near future. Watch out below!!
Also in the near future, I predict that California will be number 1
surak (#7) -
Have a look at the bottom of our latest NY Fed H.4.1 update for evidence supporting your feeling. This could get nasty.
surak,
that’s what i’ve been wondering for months? when the DOW got below 7000 i was just waiting to see it fall to 5000….then a couple months later it’s at 9500??? and for no good or rational reason? welcome to “W” shaped recovery. i suspect 10-20 years of ups and downs.
“On a state-by-state basis, Nevada had the nation’s highest foreclosure rate in the first half of the year, with more than 6 percent of all households receiving a filing. Arizona was No. 2, followed by Florida, California and Utah.”
Frankly, I am tired of Arizona’s position as the foreclosure capital being usurped by Nevada. I mean, at least Nevadans have the massive (though weakened) casino gambling industry in addition to the REIC. Here in AZ, it is all about the house building/selling and occasionally some copper is mined. It is only right that we be number one. Sure, there is some tourism, but I am trying to make a point here. Hotels are just bigger, badder underwater properties.
On a related note, hotel rates are always reduced in Southern AZ during the summer, but things have gone to the extreme. I have seen advertised rates of high-end resorts competitive with those of Days Inn. My cousin works at the front desk of a modest establishment, and even their discounted prices can not be justified when potential lodgers learn that they can choose the Wigwam, etc for similar amounts of money. Her paychecks do not yet bounce, but closure is inevitable IMO. Add another few dozen house foreclosures to the pile, plus the big commercial one.
AZsuluki,
I was wondering it it was just me.