Decrease in Foreclosure Activity

A decrease in foreclosures is what we have been hoping for, unfortunately it just isn’t nationwide. The inventory is still growing, but there are patches of metropolitan cities where foreclosure filings are decreasing. One thing to keep in mind is that we are only at the end of January, and so we have to be mindful of what this New Year holds.


RealtyTrac just released its year end Market Foreclosure Report for 2010. There is no dispute that foreclosures are higher than they were in 2009, but the activity has slowed down significantly in certain areas. There were ten metropolitan areas in which foreclosure activity increased in states like Florida, California, Arizona, Nevada, and Idaho on the low end of that category.

Overall in 2010, foreclosures were five to ten times higher than they ever were throughout history, and this is linked to joblessness. We always see a trend when the rate of unemployment goes up, so does the rate of foreclosures. The city that reported the most foreclosures in the United States was Las Vegas, Nevada, and the numbers equal out to one out of nine homes or buildings being foreclosed on. Modesto, California was one of the metropolitan cities that experienced a decrease since 2009. Hopefully as the year progresses, we will see a slowdown in other cities.

-Mayer Dallal