Industry News

New foreclosures rise about 12% in first half of ’06

Active foreclosures drop 6% as inventory sells

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New foreclosures rose 11.8 percent in the first six months of the year, according to a report by, a company that compiles a database of foreclosed homes and investment property information.   The 2006 Mid-year Market Analysis found that foreclosure properties are exchanging hands at about twice the rate of existing home sales as a growing number of loan defaults convert to foreclosures.   About 30 percent of foreclosure inventory is being sold each month, according to, while an analysis of data from the National Association of Realtors trade group indicates that about 17.7 percent of existing-home inventory was sold in May 2006. NAR data also shows that the national inventory of existing homes for sale has risen in the first five months of 2006 from 2.88 million homes in January to 3.6 million in May, a 25 percent increase.   New foreclosures rose from 23,982 in January to 26,802 in June. Meanwhile, active foreclosure inven...