U.S. foreclosures rose 55% year-over-year in July (8% sequentially) to 272,171, just shy of the 273,001 record set in May, according to RealtyTrac. The year-over-year rate is in line with June's rate, which at least suggests that foreclosures aren't getting much worse.
One in every 464 U.S. households received a default notice, was foreclosed, or was warned of a pending auction. James Saccacio, CEO of Realty Trac:
Bank repossessions, or REOs, continued to be the fastest growing segment of foreclosure activity in July, posting a 184 percent year-over-year increase — compared to a 53 percent year-over-year increase in default notices and an 11 percent year-over-year increase in auction notices. The sharp rise in REOs, combined with slow sales, has resulted in a bloated inventory of bank-owned properties for sale. RealtyTrac now has more than three quarters of a million properties in its active REO database, a number that represents approximately 17 percent of the inventory of existing homes for sale reported in June by the National Association of Realtors.
The most seriously affected areas continue to be California, Nevada, Arizona, and Florida. Map courtesy Barry Ritholtz at The Big Picture:
