Foreclosure Distribution In The United States
Mortgage Market Update
From the desk of Joe Bailey
Keeping You Informed…
Foreclosure Distribution In The United States (2005-2009)
Foreclosures have always been an issue for banks, but since 2005, the percentage of foreclosure filings coming from the top 10 foreclosure-filing states has moved markedly higher.
- Q1 2005 : 64.3 percent
- Q4 2009 : 72.4 percent
The U.S. foreclosure problem is concentrating by geography. And meanwhile, the 10 states included in the list — California, Florida, Illinois, Arizona, Michigan, Texas, Georgia, Nevada, Ohio and Nevada — account for just 45% of the nation’s population. Distilled, 45 percent of states represent 72 percent of foreclosure filings.
Clearly, some states are more foreclosure-heavy than others. We must use caution when interpreting national housing statistics. A few states can distort the bigger picture. For example, when RealtyTrac says annual foreclosures reached 2.8 million last year and that foreclosures are up by one-fifth, that’s a national story. On a local level, however, the story’s much different.
10 states showed year-over-year improvement in 2009 — including Ohio and Indiana. Both states had been hard-hit by losses in manufacturing. And even when we examine states like Florida and Arizona — two of the most foreclosure-heavy states in the nation — we can find areas in which foreclosure filings are down and the housing market is thriving.
Miami is a terrific example of this.
All real estate is local. Period. We can’t compare states any more than we can compare Bakersfield to Beverly Hills. Big picture data is important, but it’s what happens on the streets that matters, pardon the pun.
Once you’ve found a home and need a prequalification letter to accompany your offer, send me an email and I’ll get you handled.
“Play like a champion today!”
Joe Bailey - Loan Officer
O. (831) 689-8500
C. (831) 251-5167
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