RealtyTrac: Foreclosure Filings Surge 33% From Last Year

Real Estate Broker/Owner

According to RealtyTrac, foreclosure filings surged by 33% from June of 2008 to June of 2009.  Additionally, filings are up 5% month over month from May to June.  In other words, despite Obama's housing plan, the pace of foreclosures is accelerating.

According to the AP, "It was the fourth-straight month in which more than 300,000 households received a foreclosure filing".

Not that anybody should be surprised, Bush's loan modification plan didn't work either, why would this one?  The problem of course is not just housing affordability, but home values.  As long as home values continue to deteriorate, loan modifications will only act as a temporary mechanism to delay the inevitable.  If a homeowner is under water, and an estimated 15.4 million of them are,  a foreclosure is still a real and present danger. 

The macro view of this 33% year over year surge in foreclosure filing activity is that according to the NAR, existing home sales in May were down -3.6% from last year.  So not only is there a supply of homes that are about to flood the market again, before the market has had the time to absorb the sub-prime tsunami, but demand has deteriorated since last year despite record housing affordability and an $8,000 first time home buyer tax credit.  The supply and demand imbalance for housing continues to deteriorate, Jim Cramer.  This means home values are going lower.




Comments (4)

Matt Grohe
RE/MAX Concepts - Des Moines, IA
Serving the metro since 2003

Mark: RealtyTrac is always a good source of data on the foreclosure world. Let's hope we see those numbers going the other way. Thanks.

Jul 16, 2009 04:24 PM
Jim Hale
Eugene Oregon's Best Home Search Website

I believe your conclusion is quite right for houses above the median square footage.  But in my area the inventory in months for small homes is between 1 and 2 months.  For those homes, I believe the bottom has occurred.

Jul 16, 2009 09:35 PM
Jim Crawford
Maximum One Executive REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

It is interesting in the last few days the powers that be are trying to tell everyone we have pulled back from the abyss.  Housing starts are up from November which was one of the worse months in economic history. One month does not create a trend. Happy Days Are Here Again!

Jul 17, 2009 01:09 PM
Rick Watson
My Loan Nightmare - Columbus, OH

Its turning back slowly...Thank God....


Rick Watson


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Jul 18, 2009 06:29 AM