RealtyTrac Discovers Lower Foreclosure Activity in 84 Percent of Metro Areas

by Chicago Agent

RealtyTrac’s Midyear 2011 Metropolitan Foreclosure Market Report studied 211 metropolitan areas, finding that foreclosure activity through June dropped on a year-over-year basis in 84 percent, or 178, of the areas. In addition, the report found that the top ten metro areas for foreclosures all posted decreased amounts of activity in comparison to their levels during the first half of 2010.

“Foreclosure activity continued to slow in the first half of 2011, especially in the most foreclosure-saturated markets and in markets where the judicial foreclosure process is used,” said James J. Saccacio, chief executive officer of RealtyTrac. “The 20 metro areas with the biggest year-over-year decreases in foreclosure activity were all in states with judicial foreclosure processes — New York, Maryland, Florida, New Jersey, Connecticut, Massachusetts, and Illinois.”

According to RealtyTrac’s foreclosure heat map, Illinois had 11,014 new foreclosures in June-or 1 in every 480 housing units.

In April, RealtyTrac’s U.S. Foreclosure Market Report showed that foreclosure filings were down 15 percent in the first quarter, compared to the previous quarter.

“Despite foreclosure rates improving in most major markets, RealtyTrac analysts believe the slowdown is a side effect of numerous legislative and judicial decisions that are slowing the process as opposed to a genuine clearing of excess inventory,” said Housing Wire.

RealtyTrac found that cities within California, Nevada and Arizona had the highest foreclosure rates. Florida, notorious for their foreclosure rates, had only one city, Cape Coral-Fort Myers, make the top 20 cities (those with the highest foreclosure rates) as No. 12, in comparison with nine Florida cities on the top 20 list in 2010.

Las Vegas-Paradise was the No. 1 city on the list for the first half of 2011, with one in every 19 housing units (5.36 percent) in foreclosure; RealtyTrac claims that this is approximately six times the national average, but this is a 18 percent decrease from the area’s rates in the first half of 2010.

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