The States of Foreclosure

August Numbers Show Varied Month
Numbers are funny. Their meaning all depends on how they are interpreted. Take California, for example. More than a quarter of all August foreclosures took place in California—a number RealtyTrac pins at 92,326. Though a stunning load for one state to carry on its own, it represented more than a 14% decline over July and nearly a 10% decline from the previous year.

Florida, on the other hand, posted increases in both month-to-month and year-over-year figures, indicating that it may be an oversimplification to lump the big four (California, Nevada, Florida and Arizona) together when it comes to foreclosure trends. Nevada and Arizona were both down from a month ago but up from August of 2008.

Uvestor Opportunity:
 For those who have never compared, the variance between foreclosure rates between states is significant. Whereas it is as rare as nearly 1 in every 10,000 houses in states like North Dakota and Vermont, it can be as common as 1 in every 100 in states hardest hit. Nevada’s frequency is even higher.

The lesson here is to know your local area. If you are in a state that has been relatively unaffected by the foreclosure crisis and unemployment numbers are stable, the positive numbers seen this summer may be the beginning of steady growth.

In areas where the local real estate market has been on a three roller coaster, there is concern that ride may not be over. New foreclosures will need to be sorted out. The willingness of investors to snap up the inventory also will be tested. The activity through the rest of the year will be interesting, and that goes for all 50 states.