- A mixed picture has emerged of foreclosure filings in 2010
- Some big name report alarming figures
- Overall the situation actually improved
As final figures roll in for the period January through to June 2010, it has become apparent that total foreclosure filings actually increased in 75% of American metropolitan areas, in marked contrast to the improving trend previously reported. This time however, blame for the shift cannot be laid squarely at the clay feet of HAMP – the true villain is continuing low employment, and consequently the United States economy as a whole. Moreover, the top 10 metros actually reported improvements.
These are some of the key indicators reported:
- Filings in Albuquerque, Baltimore, New Mexico and Oklahoma City were double those reported year on year. In Atlantic City, New Jersey, Georgia, Savannah and Salt Lake City these notices of default rose less, but were still a full 50% higher.
“Foreclosures are spreading out from areas that had been hardest hit,” a leading market analyst told me yesterday. “[This time] we’re dealing with underlying economic weakness as opposed to unsustainable home prices and bad loans.”
- Employers in the non-governmental sector created fewer jobs during the period under review than were expected. The unemployment rate was 9.5% and more discouraged job seekers joined the dole queues. Following this information the Commerce Department reduced its growth estimate for January to March 2010.
This ongoing softness in employment and home-retention trends is expected to drive home prices further down, and release more negative economic pressures.
- 154 out of 206 American metropolitan areas – with populations of over 200,000 – reported increased default notice rates.
- The highest figures continued to be reported in Arizona, California, Florida and Nevada where the twenty worst results were obtained. Overall, however, 9 of the top 10 largest metropolitan areas actually reported decreases, suggesting an overall improving trend.
- The worst recorded rate was in Las Vegas, where a staggering 6.5% of residents were served foreclosure notices. Florida followed at 5%. Modesto, Merced and Riverside-San Bernardino recorded 4.6%, 4.5% and 4.4% respectively.
- The highest total number of default notices served was in the Lauderdale-Miami – Pompano area, where almost 95,000 were recorded – that is up 11% year-on-year. Santa Ana – Los Angeles – Long Beach followed with around 93,250 (down 12%) while Joliet-Naperville-Chicago went up 23% to just over 78,000.
This mixed batch of results is hardly likely to instill confidence in an already shaky American property market that is under threat from the twin evils of unemployment and lack of confidence. Big name metros like the ones highlighted are far more in the public eye than the larger number that logged improvements. America needs to hold onto its hat and look for the silver lining in the sky.
The website www.foreclosuredatabank.com has extensive lists of foreclosure real estate and further information regarding the property markets.
