The slumping real estate market is beginning to show up in foreclosure rates. In August, more than 115,000 properties in the United States entered some stage of foreclosure, a 24 percent increase from July and a 53 percent increase from August 2005, according to RealtyTrac, which lists foreclosed properties online.
The company reported a national foreclosure rate of one new foreclosure filing for every 1,003 U.S. households, the second highest monthly foreclosure rate reported so far this year.
In Arizona, the foreclosure rate leapt nearly 27 percent in August compared to July. Foreclosures in August were down nearly 12 percent from the same month last year, the Irvine, Calif.-based company said.
For the sixth month in a row, Colorado posted the highest foreclosure rate of one for every 301 households. It was followed by Nevada, Florida, Georgia and Texas. Arizona is 11th among the states with one foreclosure for every 851 households, the study found.
“After spiking early in the year U.S. foreclosure activity has been relatively flat over the last few months. But foreclosures ramped up significantly in August, pushing the national foreclosure rate close to its highest level of the year so far,” said James Saccacio, chief executive officer of RealtyTrac, in a statement.
“And with home price appreciation continuing to decelerate and billions of dollars in adjustable rate mortgages projected to reset in the next few months, this month’s increase could be the beginning of an upward shift in the foreclosures market.”
The five states with the most new foreclosure filings — Florida, Texas, California, Ohio and Illinois — accounted for 50 percent of the nation’s foreclosure activity in August, RealtyTrac said.
Greeley, Colo., posted the highest foreclosure rate among the nation’s 252 largest metropolitan areas, with one new foreclosure filing for every 136 households — more than seven times the national average. The Greely metro area comprises one county, Weld, which reported 488 properties entering some stage of foreclosure, a 39 percent increase from the previous month, RealtyTrac said.
After Greely came Baton Rouge, La. A foreclosure moratorium imposed by the Department of Housing and Urban Development for homeowners affected by the hurricanes of last year ended Aug. 31, contributing to the sharp rise in foreclosure activity in Baton Rouge and Louisiana as a whole, the study said.
Fort Lauderdale, Fla., has the third highest metro foreclosure rate in the nation.