News today of a 400-point stock market dive, an $11 rise in crude oil to $139 a barrel and the highest jump in unemployment since 1986 is just peachy. Of course, it’s really worse than that because Americans are also losing their homes at an unprecedented clip.
In fact, for the first quarter of 2008 [Q108], foreclosures increased in 46 out of 50 states year over year and in 90 of the 100 biggest metro areas. About 20 states saw decreases in their foreclosure rates, including Michigan, Ohio and Indiana. Huge increases in foreclosures in the BIg Four–California, Florida, Nevada and Arizona-accounting for 42% of all foreclosures–offset the modest decreases in other states.
How bad off are we compared to others?
Overall, for Q108 foreclosures are up nationwide 23% over Q407 and up 112% over Q107, that is, one year ago. Nevada was top loser with 1 in every 54 households in foreclosure, up 3.9% over Q407 and up 139% over one year ago. California clocks into the number 2 spot with almost 170,000 foreclosures in Q108, one in every 78 households, up 32% over Q407, and up 213% over Q107. What explains the difference in the year over year percentages? Nevada has been in this process longer and is closer to the bottom than California. California is just beginning to feel the pain, hence up 213% over last year. California with 13% of the nation’s mortgages accounted for 21% of the homes entering the foreclosure process.
Next is line is Arizona, with 1 in every 94 homes in foreclosure up 45% over Q407 and 245% over Q!07. Like California, Arizona is just getting into this morass.
Florida at number 4 is in some respects worse off with 1 in every 97 households in foreclosure, up 17% over Q107 and 178% over Q107. Florida has 8% of the nation’s mortgages and 15% of all foreclosures. But, that more modest increase over Q07, horrible though it is, shows that Florida is closer to the bottom than the other three states.
How bad off are we really here in California? It’s pretty bad. Foreclosures in the top or worst metro areas include Stockton as numero uno, followed by Riverside-San Bernardino megalopolis, then little SoCal, Las Vegas as number 3. Then, 4, Bakersfield, 5,Sacramento, 9, San Diego, 10, Oakland, 12, Fresno, 17, L.A. and rounding out the terrible twenty, Orange County, no. 20. So, California cities take 9 of the top 20 spots as worst foreclosure metro areas.
Those Lakers better do something to cheer us up.