Los Angeles Foreclosure Rate Drops Below National Average
California Foreclosures Up Almost 9 Percent
IRVINE, Calif. – Nov. 28, 2006 – Los Angeles’ foreclosure activity decreased 30 percent in October, ending four straight months of increases and lowering the city’s foreclosure rate back below the national average, according to the RealtyTrac™ October 2006 U.S. Metropolitan Foreclosure Market Report.
The metro area, which comprises just Los Angeles County, documented 2,557 new foreclosure filings during the month, a foreclosure rate of one new foreclosure filing for every 1,279 households.
RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure and foreclosure properties, with over 700,000 properties from nearly 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal.
“It’s not surprising that foreclosure activity in Los Angeles took a break from the fairly rapid increases of the past four months,” said James J. Saccacio, chief executive officer of RealtyTrac. “The region’s housing market may be cooling, but it is still built on a solid foundation of low unemployment and a growing population, both of which ensure continued demand for housing. With foreclosures and other properties flooding the market, price appreciation may slow or even dip into negative territory, but eventually the law of supply and demand will take over and buyers and investors will start snatching up properties, realizing that a slumping market can be a good time to buy.”
The city’s foreclosure rate was the median rate among five of the nation’s top metropolitan areas. Foreclosure rates in Dallas and Chicago were higher than the rate in Los Angeles, while rates in New York and Philadelphia were lower than in Los Angeles.
Nearby Orange County also documented decreasing foreclosures in October. The county reported 812 new foreclosure filings, a 6 percent decline from the previous month and a foreclosure rate of one new foreclosure filing for every 1,194 households — higher than the foreclosure rate in Los Angeles but still below the national average.
Foreclosure rates in the Inland Empire registered above the national average despite decreasing foreclosure activity. With 1,532 new foreclosure filings, San Bernardino County documented a foreclosure rate of one new foreclosure filing for every 393 households. Riverside County reported 1,482 new foreclosure filings, a foreclosure rate of one new foreclosure filing for every 395 households.
California’s foreclosure rate of one new foreclosure filing for every 759 households was 1.3 times the national average. The state reported 16,098 new foreclosure filings during the month, an increase of almost 9 percent from the previous month and the most new foreclosure filings reported by any state.
A total of 115,568 properties nationwide entered some stage of foreclosure in October, an increase of nearly 3 percent from the previous month and an increase of more than 42 percent from October 2005. The nation’s foreclosure rate of one new foreclosure filing for every 1,001 households was the highest national foreclosure rate reported in any month so far this year.
The RealtyTrac Monthly U.S. Foreclosure Market Report provides the total number of homes in some stage of foreclosure nationwide, statewide and by county in the Los Angeles Metropolitan Statistical Area Division over the preceding month. RealtyTrac’s report includes properties in all three phases of foreclosure: Pre-foreclosures – Notice of Default (NOD) and Lis Pendens (LIS); Foreclosures – Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repossessed by a bank).
About RealtyTrac Inc.
Ranked as the third largest real estate site by MediaMetrix and No. 53 on Inc. magazine’s 2006 Inc. 500 list of the nation’s fastest-growing private companies, RealtyTrac Inc. (http://www.realtytrac.com/), is the leading online marketplace for foreclosure properties, providing all the resources that home seekers, investors and real estate agents need to locate, evaluate and buy properties below market value. Founded in 1996, RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure, foreclosure, For Sale By Owner, resale and new construction properties, with more than 1 million properties across the country, property reports, productivity tools and extensive professional resources. RealtyTrac hosts nearly 3 million unique visitors monthly and has been chosen to supply foreclosure data to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal. For more information, visit http://www.realtytrac.com/.
Order Customized Reports
Detailed and historical foreclosure data used to create the above report may bepurchased through the RealtyTrac Data Licensing Department at 949.502.8300 Ext.158. Aggregate data is available at the state, metro, county and zip codelevels dating back to 2005, and address-level foreclosure records are alsoavailable historically.
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Detailed & Historical Data:
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