Starting in January 2005, RealtyTrac began gathering and reporting on national foreclosure statistics and the first state to top the list was Texas, claiming the top spot not only for total foreclosure activity (12,614 properties with foreclosure filings), but the top foreclosure rate as well (one in every 590 Texas housing units had a foreclosure filing back then).
Texas stayed on a roller coaster ride in those early years, sharing the top spot on RealtyTrac’s top 10 with Florida that first year, before California joined in the game in 2006, taking over the top spot permanently in January 2007 (the spot it still remains in to this day).
Although Texas has remained in the mix of the nation’s top 10 all along, the effect of foreclosures on the Lone Star State’s economy has dwindled significantly since those early days, argues James P. Gaines, research economist at Texas A&M University, as the guest columnist in the July issue of Foreclosure News Report.
“During the past four years, Texas weathered the foreclosure storm better than most. The 2007 recession hit Texas almost a year after it officially started and its overall impact was relatively mild. The absence of artificially ballooned home prices and the resultant bust, in conjunction with an expanding energy sector, buffered the state’s economy and housing,” Gaines says in his “My Take” column.
Gaines points to employment growth as the game changer that has made the difference as to why the state’s rental market is gaining strength, negative equity has not been as severe as it has been in other states, and home prices have helped elevate the volume of non-distressed home sales — thanks in large part to a median home price that stayed essentially flat between 2007 and 2010, falling less than 1 percent from its peak.
To read Gaines’ entire article, subscribe today to the award-winning Foreclosure News Report.
Here are some other articles that may be of interest to you as well from RealtyTrac’s newsroom:
Four States, Four Different Foreclosure Patterns
The Unsettled Foreclosure Settlement
Foreclosures and the Presidential Race