Foreclosure Activity Increases Nationwide

According to the California Association of Realtors [CAR]:


.  The report by RealtyTrac® also showed nine of the 10 metro areas with the highest foreclosure rates experienced declines.  Four states—Florida, California, Nevada, and Arizona—accounted for the top 20 metro foreclosure rates. Florida led the way, with nine of the top 20 metro foreclosure rates, followed by California with eight of the top 20 metro foreclosure rates, Nevada with two, and Arizona with one.

With 4.59 percent of its housing units (one in 22) receiving a foreclosure filing, Modesto, Calif., posted the nation’s third highest metro foreclosure rate. Other California cities in the top 10 were Merced at No. 4 (4.47 percent of housing units); Riverside-San Bernardino-Ontario at No. 5 (4.37 percent); Stockton at No. 6 (4.37 percent); and Vallejo-Fairfield at No. 9 (3.91 percent).

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People frequently ask me when I think that home prices might recover from this recession. These foreclosure figures make it plain California has not recovered, though San Francisco, Los Angeles and San Diego, the biggest cities, are not in the top foreclosure areas.

With all the wealth of California, why are foreclosure rates still so stubbornly high? One reason is that our housing prices were “out of sight” for quite some time and are coming back to earth with a thud. The other reason is our very high unemployment rate which also answers the question about rising home values. Not until the employment situation turns around will home values start to climb again. Unemployed people do not buy houses. If they already have homes, they are in danger of losing them to foreclosure as the above figures from CAR show us.

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