Real estate properties in the process of foreclosure grew for the second consecutive month in July, according to data released today by RealtyTrac.
The number of new properties in foreclosure rose to 78,979 in July, a 4.7 percent increase from June and the most new foreclosures reported in any month year-to-date. New foreclosures have jumped more than 12 percent in the last two months, pushing the nation’s foreclosure rate to one foreclosure for every 1,465 households, according to RealtyTrac.
“If the trend from the last two months continues, foreclosures may gather enough momentum to significantly impact the real estate market,” said James J. Saccacio, RealtyTrac chief executive officer. “The numbers for the next few months will let us know if that’s the case.”
Florida reported the highest number of new foreclosures of any state with 12,471, a 27.5 percent increase from the previous month, which boosted the state’s foreclosure rate to one foreclosure for every 586 households. Even though Florida properties entered foreclosure at a higher rate than the previous month, the state’s foreclosure rate slid from second highest to third highest nationwide because of greater increases in other states.
Texas wasn’t far behind Florida in terms of the number of new foreclosures, with 10,100 properties entering some stage of foreclosure last month. But that was a 25.8 percent decrease from June, which lowered the state’s foreclosure rate to seventh highest in the country with one foreclosure for every 797 households.
New foreclosures in Arkansas soared 150 percent in July, giving it the nation’s highest foreclosure rate with one foreclosure for every 491 households – almost three times the national average. The state reported 2,389 new foreclosures last month.
Tennessee reported 4,481 new foreclosures in July – fewer only than Florida, Texas and Ohio – and registered the nation’s second-highest foreclosure rate with one foreclosure for every 547 households. It was the first month this year that foreclosure rates in Arkansas or Tennessee ranked among the five highest in the nation.
With one foreclosure for every 604 households, Hawaii’s foreclosure rate also placed among the five highest in the country for the first time this year. The state reported 763 properties entering some stage of foreclosure. Colorado’s foreclosure rate rounded out the top five with one foreclosure for every 743 households. July was the fourth consecutive month Colorado’s foreclosure rate ranked among the nation’s five highest.
Foreclosure rates in Georgia and Utah dropped out of the top five, but not far. Georgia reported 4,107 properties entering some stage of foreclosure, giving it the nation’s sixth-highest foreclosure rate with one foreclosure for every 754 properties. Utah posted the eighth-highest foreclosure rate with one foreclosure for every 805 households.
RealtyTrac publishes the largest national database of pre-foreclosure and foreclosure properties, with more than 550,000 properties in nearly 2,000 counties across the country.
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