NATIONAL FORECLOSURES DECREASE 16 PERCENT IN SECOND QUARTER
ACCORDING TO REALTYTRAC™
IRVINE, Calif. – July 26, 2006 – RealtyTrac™ (http://www.realtytrac.com/), the leading online marketplace for foreclosure properties, today released its 2006 Q2 U.S. Foreclosure Market Report, which shows that 272,109 properties nationwide entered some stage of foreclosure in the second quarter of 2006, a 16 percent decrease from the previous quarter but still a 25 percent year-over-year increase from the second quarter of 2005. The nation’s second-quarter foreclosure rate of one new foreclosure for every 425
RealtyTrac publishes the largest national database of pre-foreclosure and foreclosure properties, with nearly 600,000 properties in more than 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate, AOL Real Estate and Knight Ridder Online.
“Foreclosure filings in the second quarter of 2006 present a classic ‘good news, bad news’ scenario,” said James J. Saccacio, chief executive officer of RealtyTrac. “A 25 percent increase from the second quarter of 2005 obviously isn’t a positive trend. But, despite some of the sensational reports we’ve seen lately, foreclosure filings have actually slowed down since peaking in February.”
“While the nation’s foreclosure rate has certainly shifted into a higher gear since last year, low unemployment and home price appreciation in most housing markets have held foreclosures in check,” Saccacio continued. “We forecasted a slowdown in foreclosure rates when we released our last quarterly report, and we expect that if the summer months deliver their typically high number of home buyers, the demand for housing created by these buyers should help keep foreclosure rates from rising too rapidly.”
Foreclosure activity in Georgia slowed substantially in June, and the state’s second-quarter foreclosure rate — one new foreclosure filing for every 202 households — dropped to second highest among the states. The state reported 15,309 properties entering some stage of foreclosure during the quarter, a 37 percent decrease from the previous quarter but still a 42 percent increase from the second quarter of 2005.
Texas reported 39,690 properties entering some stage of foreclosure during the second quarter, the most of any state and a foreclosure rate of one new foreclosure for every 203 households — the nation’s third highest state foreclosure rate. The state’s foreclosure activity decreased 1 percent from the previous quarter but was up 22 percent from the second quarter of 2005.
Other states with second-quarter foreclosure rates ranking among the nation’s 10 highest included
With 18,690 properties entering some stage of foreclosure,
“One of the key factors to watch for over the next quarter is the extent to which some of the higher-risk, adjustable rate mortgages go into default,” according to Saccacio. “Hundreds of millions of dollars of these types of loans are due to re-set during the rest of 2006, and if they default at a higher rate than more traditional mortgage loans, it could significantly accelerate foreclosure filings.”
The RealtyTrac 2006 Q2 U.S. Foreclosure Market Report provides the total number of homes entering some stage of foreclosure nationwide and by state in the second quarter of 2006. 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 re-purchased by a bank).
About RealtyTrac Inc.
Ranked as the third largest real estate site by MediaMetrix, RealtyTrac Inc. (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 AOL Real Estate, MSN Real Estate and Yahoo! Real Estate. For more information, visit www.realtytrac.com.
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.
949.502.8300 Ext. 139
949.502.8300 Ext. 268
Detailed & Historical Data:
949.502.8300 Ext. 158