Realty-Trac Numbers Show Fluctuating Foreclosure Activity Over Past Year

December 20, 2012 (Press-News.org) Realty-Trac numbers show fluctuating foreclosure activity over past year

Data from the real estate research firm Realty-Trac shows a housing market still struggling with foreclosures and bank-owned homes. Some believe the increase in foreclosures is a sign that the nation's banks and mortgage servicers are more confident in new mortgage and foreclosure rules and are willing to begin the foreclosure process on distressed properties.

Late 2011 by the numbers

In the fourth quarter of 2011, about 24 percent of all home sales in the United States were sales of foreclosed or bank-owned homes. This number was up from the third quarter of 2011 but down from the fourth quarter of 2010. In the fourth quarter of 2011, the average price of a distressed home was $164,944, nearly 30 percent lower than the price of a non-foreclosed home during that time. The state of Nevada had the worst rate of foreclosed homes for sale, with 56 percent of all homes for sale in foreclosure.

2012 trends

At the time, Realty-Trac estimated that foreclosure sales would increase throughout 2012. In fact, in the second quarter of 2012, distressed sales represented 23 percent of all housing sales, up 22 percent from the first quarter of 2012 but less than the percentage of sales in the last quarter of 2011. Additionally, Realty-Trac found that the actual number of homes available for sale decreased in the second quarter of 2012, indicating a low housing inventory.

Some Florida cities faring poorly

Realty-Trac also compiles data for the nation's largest metropolitan areas, including cities in Florida like Tampa and Miami. In the third quarter of 2012, foreclosure activity decreased in 62 percent of cities with a population over 200,000.

However, certain large metropolises suffered increases in foreclosure activity, including two metro areas in Florida. New York and Tampa had the largest increases in activity, with New York experiencing a 69 percent increase in foreclosure activity and Tampa a 43 percent rise, equating to one in 106 housing units affected by foreclosure. Miami also made the list with an 11 percent increase in foreclosure activity, or one in 100 units.

In all, seven Florida cities make the list of the top 20 cities with the highest foreclosurerates. However, one notable exception is the metro area of Ocala, which experienced a seven percent decrease in foreclosure activity in the third quarter of 2012.

Bank confidence may explain rise in rates

Now that the national mortgage settlement has been reached, the nation's largest banks have become more confident in the new rules governing foreclosure. This confidence has prompted them to begin the foreclosure process on eligible mortgages. In fact, the foreclosure rate increased between May 2011 and May 2012 for the first time in 27 months of year-over-year declines in foreclosure rates.

The volatile housing market will likely continue as banks resume efforts to foreclose distressed properties. Those who are underwater on their mortgages should contact a bankruptcy attorney to understand how bankruptcy may prevent banks from foreclosing on their properties.

Article provided by B&B Law Group
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